How do I carry over losses from my k1 distributions to count against my ordinary income on my individual returns?

[sgpember2019]

How do I carry over losses from my k1 distributions to count against my ordinary income on my individual returns?  I have a single owner S Corp. and I needed to shut it down after 10 years.  In the past, I've only distributed the positive K1 as ordinary income on my personal returns.  However, I'm not sure how to setup turbotax to automatically roll over the losses onto my personal returns. 

Thank you in advance,

SP 

[AmeliesUncle]

What type of losses are they?  Ordinary?  Passive?  At-Risk?  Something else?

Are you saying you had losses in prior years but did NOT claim them?  Why?

[sgpember2019]

Hi,

Thank you so much for the help!  The loss was an ordinary income loss in 2017 and listed as a Non-passive K1.  The K1 Non-Passive Loss was reflected on my personal filing and my AGI was also negative.  With that said, my personal AGI for 2017 was heavily negative so I know that some amount can be carried over, just not sure how to calculate that loss on my personal filing for 2018.   I hope I'm making sense.   

Additionally, there was no business income for 2018 so there won't be a business filing, largely because the business went under December 31, 2017.   Any assistance you can provide is greatly appreciated!  Thank you!

[AmeliesUncle]

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@sgpember2019 wrote:

The K1 Non-Passive Loss was reflected on my personal filing and my AGI was also negative.  With that said, my personal AGI for 2017 was heavily negative so I know that some amount can be carried over, just not sure how to calculate that loss on my personal filing for 2018. 

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It sounds like you probably have a "Net Operating Loss" (NOL) on your personal tax return.  That does not affect how you report things in connection with the corporation.

For the NOL, unless you filed the election on a timely filed 2017 tax return, that must be carried BACK to 2015, and you would need to amend your 2015 tax return to claim that.

However, TurboTax does NOT calculate NOLs, so you may want to go to a tax professional for this.

[sgpember2019]

Thanks again for the expert assistance. I'll schedule some time with Tax Advisor today.

With that said, can't that non-passive loss from 2017 Business return be used and carried over to future personal filings?  It was used on my personal filing in 2017 so I'm curious if I filed incorrectly.  For that matter, should I amend the return to insure those losses get carried over because they are substantial?  Again, I appreciate your info and help.  Thanks again, SP

[AmeliesUncle]

Yes, that loss was entered on your 2017 tax return.  That made your AGI negative, which is likely a NOL.  That NOL is then carried back to the 2015.  So effectively, that loss will save money on your 2015 tax return.