How To Input A Prior Year Loss Carryover On Form 1120S in Turbo Tax Business S Corporation?

[asanyal]

How To Input A Prior Year Loss Carryover On Form 1120S in Turbo Tax Business S Corporation?

[tagteam · Accepted solution]

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@asanyal wrote:

How To Input A Prior Year Loss Carryover On Form 1120S in Turbo Tax Business S Corporation?

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Can you expand on this a bit further. S corporations are pass-through entities and typically do not have loss carryovers (i.e., they are distributed to the shareholders on K-1s).

[asanyal]

I trade stocks in my S Corp.  I made a $30k loss in my 1120S for 2018, & I have a $2k gain in 2019. Does the $30k loss carry over to my 1120S for 2019?  Or does the $30k loss carry over through my individual 1040? 

[tagteam]

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@asanyal wrote:

Or does the $30k loss carry over through my individual 1040? 

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The loss should have been distributed out to you on your K-1 for 2018.

[andrewz]

What if the loss exceeded the stock basis, and was only partially compensated in previous K1? But this year the adjusted basis allows to compensate the carryover portion of losses. Where do I enter it? Thanks! 

[Irene2805]

TurboTax does not track the limit to losses because of basis.  This is something you have to do manually.

If you are using the CD/Download version of TurboTax, you can enter the at risk loss carryover in Forms Mode, using these steps:

1. Go into Forms Mode by clicking on the Forms icon in the top right of the blue bar. 
2. In the Forms in My Return list on the left, click on the form you wish to open -- K-1 S-Corp [name]. 
3. The form will appear in the screen on the right.
4. Scroll down to Section A (below line 17).
5. Enter the loss carryover on line 1a, column (b).  Enter as a negative number,
6. This number will flow to Schedule E, p. 2, with the notation PYA-- there are allowed losses that were previously disallowed due to at-risk limitations
7. To return to the interview, click on the Step-By-Step icon in the top right of the blue bar.

If you are using TurboTax Online, adjust the amount on line 1 of the K-1 to account for the loss carryover applied to income.

@andrewz

[comboardq]

@Irene2805 Thank you for this info. You are the first person to state definitavely that TT doesn't track this, and I have been talking for way too long on the phone with many TT experts!

Could you further clarify though, becuase I thought Section A of the K-1 forms view is dealing with passive loss limitation carryovers, not basis loss limitation carryovers. Thanks!

[tagteam]

@comboardq 

@Irene2805 is a former TurboTax expert who has not posted in a year and a half so you are not likely to get a response.