The 1120-S has a loss in 2023 of approximately $16,000. That loss amount is allowed on 7203. Once I enter that on 1040-SR, the total income is approximately $-19,000. The loss did not help 1040 taxes. It had no impact. On the 7203 form , Part II, Shareholder Debt Basis was decreased in 2022 for a loss, and now is further reduced by the 2023 allowed loss on line 30. The 2022 loss did offset 2022 income. The 2023 allowed loss just increased the loss further. Would this loss be treated like capital gains losses of $3000 allowed that continue to carry over if they don't help tax situation? Would the impact of $0 benefit be adjusted as a repayment on the Shareholder Debt Basis as Nontaxable debt repayment on line 26? If so, would that adjustment for 2023 loss be made on 2023 or 2024 7203 form? What lines would any adjustment be made and for how much? Thank you very much for your assistance.
