2019 Net Operating Loss Carryover for an S-Corp

[subzero06]

I had a K1 for 2019 with NOL of -$119425.  This year I have a K1 for 143820.  How do I carryover last year's operating loss in this year's turbo tax submission?  I'm not seeing on my practice run where TurboTax is accounting for last year's loss.

[Critter-3]

Explain where on the K-1 there was an NOL reported ?   

An S-Corp is a pass thru entity and cannot have an NOL.   What you could have was an ORDINARY loss that would transfer to the Sch E page 2 of the  personal return.  And then you may have had a NOL on the 1040. Then did you choose to waive the NOL  carryback on a timely filed 2019 return ? 

[Mike9241]

as @Critter-3 posted the loss from the S-Corp gets reported on your 2019 1040.  then you had to determine if your 1040 showed a NOL for that year.  (unlikely if adjusted gross income is greater than $0). 

here's a link to a worksheet to compute if you have an NOL  

https://www.irs.gov/publications/p536#en_US_2019_publink[phone number removed] 

if you have an NOL you can make an election to waive the 5 year carryback. if you don't waive the carryback you would have to file amended returns starting with 2014 any remaining NOL gets carried forward to 2015 and so forth.  the IRS allows a late election as follows

Late Waivers of 2018 and 2019 NOL Carryback Period
A taxpayer generally must file an election to waive an NOL carryback period by the due date, including extensions, of the income tax return for the year in which the NOL arose. However, the IRS allows taxpayers to file late waivers for NOLs arising in tax years beginning in 2019. The election to waive the carryback must be made by the due date, including extensions, for filing your 2020 income tax return. the election to carryforward the 2019 NOL must be separately stated.

The election statement must state that the taxpayer is electing to apply § 172(b)(3) under
Rev. Proc. 2020-24 and the taxable year for which the statement applies. Once made,
the election is irrevocable.

[AmeliesUncle]

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@subzero06 wrote:

I had a K1 for 2019 with NOL of -$119425.  

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You first need to determine how much, if any, of the $119,425 was usable last year.

If you had Basis in the corporation and the loss was non-passive, then some or all of it was used last year.  

You need to know if it was a Passive loss or not (passive is usually for rental property or a business that you do not Materially Participate in).

If some or all of it was used last year, then you may have had a NOL on your personal tax return.  That is treated differently than a carryover K-1 loss.

So until you are able to tell us exactly what type of income it was and whether or not it was able to be used last year, it is impossible to tell you what to do for this year.

[elorac]

We are a small s Corp, single owner.  In 2019 we had a significant loss.  In 2010 we had a significant profit as the result of an aircraft commission which is an exception not the rule. So now our income looks really odd.  How can I fix this.  

[DawnC]

What do you mean, it looks odd?   Your 2019 loss belongs to the tax year 2019.   And you say that you had significant profit in 2010 - do you mean 2020?   What do you need to ''fix''?    @elorac

[elorac]

Yes, it should be 2020.  I’m trying to find out if I can carry forward a prior year loss from the s Corp and apply it to 2020 taxes on our 1040 return, and how to do that. 
when I said odd, I meant the profit is inflated compared to prior years. Thanks 

[AmeliesUncle]

See my answer above.  You need to determine how much of it was allowed to be used in 2019.  It is quite possible that it was all allowed to be used in 2019 and nothing would be carried forward.

[DawnC]

Partnerships and S corporations generally cannot use an NOL.  However, partners or shareholders can use their separate shares of the partnership's or S corporation's business income and business deductions to figure their individual NOLs.    You have to first determine if you have one to carry-forward.   TurboTax doesn't calculate NOL amounts, but if you determine you have one, there is a place to enter the carry-forward amounts; search for NOL in the program.    For instructions and help with figuring the amount, if any, please see Publication 536.   

You can carry it forward if you waive the option to carry it back, assuming you did have an NOL in 2019.   @elorac