TURBO TAX 222 NOL 1120S

Forum|Forum|2 years ago
September 12, 2023
1 reply
0 views

Where and How You Enter NOL from 2021

TurboTax Business Windows

Best answer by Mike9241

an S-corp does not have an NOL at least for federal purposes. any loss passes out to the shareholders and it's at their individual income tax level (1040) that an NOL is determined.

Mike9241Answer

an S-corp does not have an NOL at least for federal purposes. any loss passes out to the shareholders and it's at their individual income tax level (1040) that an NOL is determined.

Gil BashanAuthor

Thank you.

How (What form) the 2021 NOL of the company is reported to the investor to be used with his/her 1040?

Mike9241

The loss would be shown on the k-1 from the S-Corp to the shareholders. then the shareholder enters the k-1 info in their 1040. they also must complete form 7203 to show that they had sufficient basis to take the loss. they must also be at-risk. the loss can also be subject to passive activity rules. just because the S-Corp reports a loss does not mean the shareholder has an NOL other items of income and expense and the tax laws must be taken into account

the shareholders can use form 1045 schedule A for 2021 to see if they have an NOL

https://www.irs.gov/pub/irs-prior/f1045--2021.pdf

there would be an NOL if there is an excess of items of business loss reduced by items of business income

after reduction by the excess if any of nonbusiness income over nonbusiness deductions there are rules as to what items are business vs nonbusiness.

if you do not understand all this I suggest you use a professional.