1120S K-1 Basis Statement and Loss Carryforward

[David]

S Corp TP has beginning basis of zero and a prior years loss carryforward of $291K. Current year income, and increase in basis, is $164K. TP also took distributions for $332K resulting in $168K distributions in excess of basis. Year end basis is zero.

I will report the $168K excess distributions on Sch D subject to the LTCG rate of 15%. Is this normally how excess distributions are recorded?

The ATX Basis Statement shows the total income items for $164K and the $291K prior years loss carryforward. However, at the bottom of the Basis Statement the loss carrover still shows $291K. Shouldn't the loss carryover be $$127K which is the $291K p.y. loss carryforward less the current year income of $164K?

Has anyone else experienced this problem?

What do I need to do to show the correct loss carryover?

The TP should not be taxed on his 1040 for the current year income of $164K since he should be allowed to offset the income by the p.y. loss carryforward.

Thanks for your help.

[cred65]

Have you filed Form 6198 "At Risk Limitations" with the returns past and present?

[David]

Yes.

Have you filed Form 6198 "At Risk Limitations" with the returns past and present?