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March 7, 2023
Question

1231 S Corporation Loss

  • March 7, 2023
  • 2 replies
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Is my 1231 loss carryforward from my prior year S CORPORATION, that I was a shareholder in and sold  at a loss limited on the amount I can use in the current year against my new partnership income?

 

    2 replies

    Employee
    March 7, 2023

    What are (were) the circumstances here? 

     

    Section 1231 losses and gains are netted, but a Section 1231 loss can be used to offset all other income (it is an ordinary loss) and has the potential to create an NOL. 

    March 7, 2023

    the 1231 loss limitation probably should not be reflected on the S-Corp because that limitation is at the shareholder level.