TURBO TAX 222 NOL 1120S

[Gil Bashan]

Where and How You Enter NOL from 2021

[Mike9241 · Accepted solution]

an S-corp does not have an NOL at least for federal purposes. any loss passes out to the shareholders and it's at their individual income tax level (1040) that an NOL is determined.  

[Gil Bashan]

Thank you.

How (What form) the 2021 NOL of the company is reported to the investor to be used with his/her 1040?

[Mike9241]

The loss would be shown on the k-1 from the S-Corp to the shareholders.  then the shareholder enters the k-1 info in their 1040.  they also must complete form 7203 to show that they had sufficient basis to take the loss. they must also be at-risk. the loss can also be subject to passive activity rules. just because the S-Corp reports a loss does not mean the shareholder has an NOL other items of income and expense and the tax laws must be taken into account

the shareholders can use form 1045 schedule A for 2021 to see if they have an NOL  

https://www.irs.gov/pub/irs-prior/f1045--2021.pdf 

there would be an NOL if there is an excess of items of business loss reduced by items of business income

after reduction by the excess if any of nonbusiness income over nonbusiness deductions there are rules as to what items are business vs nonbusiness.  

if you do not understand all this I suggest you use a professional.