Discussion:Computing basis limitations

I did an amended return for 2004 and entered at x amount as beginning stock basis, there were additional contribution and loan to the company by the only shareholder. At the end of the year there was a debt basis balance but the stock basis was "0". I transferred the information to 2005 in which there were no more contribution and only a small loan repayment. I exported K1 to this shareholder and did not typed in anything as the beginning stock basis, when i do this, lacerte shows no computation for basis and it looks like it's allowing and not limiting the losses. When i put a beginning stock basis, even if it's a $1 it computes the limitations and it shows as income the portion of repayment. What am i missing?? I understand that losses should be limited because when i compute ending stock basis (by hand) it's negative which should limit the losses...confused a little here... thanks