carry forward capital losses

[nad6211]

When completing the 1065, where do you indicate the accumulated carry forward losses from previous years and show the amount offsetting gains for the tax year being addressed.  Our business is an LLC for my wife and I to trade stocks, bonds, options and futures.  We have a sizeable carry forward loss from years past and have a nice net gain for 2021.  The 1065 and K-1 seem simple enough except we don't know where and how to show that the 2021 gains being offset with carry forward losses.

[Anonymous_]

Is this the first year you are using TurboTax Business?

Each year, your net gains and losses should be passed through to you and your wife on your K-1s.

[nad6211]

It is our first year to use turbotax business.  We had losses last year in our trading accounts as the first year of incorporation as an LLC.  Tried to read up on reporting but simply calculated the losses and the business expenses and did not factor in the accounts carryforward losses and the $3,000 deduction allowed on our household taxes (married filing jointly).  Let's say we have $30K in gains but we have $100,000 in carry forward losses.  I still don't see where that gets recorded.  I am assuming the $30K does not show as a gain but as a net $0 until the carried forward losses are down to 0.  But how?

[nad6211]

Those losses were on the accounts prior to forming the LLC.  That is the difficulty in knowing how to bring those into the LLC and show them being used to offset any current gains.

[Anonymous_]

It really is not going to make any difference whether you enter your carryforward losses on your personal income tax return or otherwise.

You can still use those losses to offset any gains you have as a result of entering gains from your K-1s.