Entering tax basis for LLC

Swagner97
Swagner97 Member Posts: 3 Newcomer
in Income

I have a high tax basis based on non-recourse liabilities on my K1 but my distribution is showing as a gain due to negative basis. Where do I enter information about my tax basis?

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Answers

  • MatthewD
    MatthewD FreeTaxUSA Admin, FreeTaxUSA Agent Posts: 1,042 image
    Hello Swagner97,

    The software does not support entering any basis information about partnerships. We only support S-Corporation basis with the Form 7203 if you have a distribution or loss flowing through the S-Corp to the individual owners.

    The software will always warn the customer about their basis when taking a distribution and you'll need to ignore the Yellow warning and move on if you have a high outside basis.
  • Swagner97
    Swagner97 Member Posts: 3 Newcomer

    My problem is it is reporting a capital gain on Schedule D that I can't remove. Do I need to use a different software to handle my taxes because of this?

  • Swagner97
    Swagner97 Member Posts: 3 Newcomer
    https://community.freetaxusa.com/discussion/comment/8548#Comment_8548

    My problem is it is reporting a capital gain on Schedule D that I can't remove. Do I need to use a different software to handle my taxes because of this?

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