Here’s the situation:
• I closed the S-Corp in April 2023 (marked as “disposed, not sold” in TurboTax).
• On Form 7203 from 2022, I had a carryover basis loss of $983.
• In 2023, I had an actual loss of $1,235, which TurboTax correctly applied.
• However, TurboTax is not applying the $983 carryover loss. It’s showing it as a carryover to next year — even though the business is now closed and this is the final year.
• From my understanding, TurboTax should combine both the 2022 carryover and 2023 actual loss and allow me to deduct the full amount this year, as there won’t be a future opportunity to use the carryover.
I’ve gone through the steps to mark the S-Corp as disposed. I’ve also entered the basis info on Form 7203. Still, the carryover remains.
Question:
👉 How do I tell TurboTax to apply the carryover loss this year since the S-Corp has been disposed and will no longer exist?
Any guidance or steps would be much appreciated. I want to ensure I’m not losing that $983 deduction just because of a software limitation.
posted
last updated
April 11, 2025
5:05 PM
