AliciaP1
Expert Alumni

Get your taxes done using TurboTax

Since you are a passive shareholder, all the income from the investment is passive and falls under the passive activity loss rules.  The total allowed loss from the basis limitations is limited to the current year's passive income.   So, yes, if the current year's income doesn't cover the carryover losses from a previous year, the loss is carried over again.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"