TurboTax experts are all over the spectrum as to their answers, and, after hours on the phone, I'm searching for an answer that I am confident is correct. As a sole proprietor, I have a Section 465 (d) carryover, accumulated from the 2 previous tax years, which auto-populates as an expense on Schedule C, reducing the net income(loss). The current year is profitable before the loss carryover is considered. The previous years' losses were funded from personal funds, and there are no investors, and no loans. The full amount is at risk. The concern I have is this: The loss carryovers are accounted for in the current net profit(loss). That net amount is then transferred to Schedule 1, line 3, but is also auto-populated on Schedule I, line 8a, which then added to line 3, thereby doubling the net loss. That amount is then transferred to Form 1040, line 8, as additional income(loss). Does anyone have an explanation for this, or, more importantly, a solution that will apply the loss to the appropriate entity, and will still correctly calculate and tract the loss carryovers in future years?
