I incurred a significant business loss in 2024 and ultimately lost my business to the landlord due to unpaid debts and financial struggles. As a result, I filed for chapter 7 and have all debts discharged and on doing so lost over $225,000 of my initial investment in the business.
When filing my 1120S tax return, I reported the amount of money lost from the business disposal as a loss, since I did not receive any proceeds. On my Schedule K-1, this was recorded under Section 1231 as a business loss. However, when I entered my Schedule K-1 into my 2024 personal tax return, it offset all my taxable income, resulting in a total negative income of -$108,000.
My Concerns:
Impact of Negative Income:
- With a negative total income, I’m concerned that it might negatively impact me, as it suggests I had no income for 2024.
- Could this cause issues for financial support, loan applications, or other financial matters?
No NOL Carryforward in TurboTax:
- Despite my negative total income, I do not see any Net Operating Loss (NOL) carryforward in TurboTax.
- There is no indication of these losses being carried forward on Schedule D, Schedule C, or anywhere else in my tax return.
- Is this a TurboTax issue, or did I make an error in reporting my losses?
I appreciate any guidance on whether I should expect an NOL carryforward and how to verify if TurboTax is handling my losses correctly. or Should I calculate and enter manually next years?
From my understanding:
- Since my income with negative AGI (-$108,035).
- Adding back my standard deduction (which was $29,200 for married filing jointly).
- The estimated NOL carryforward is: −108,035+29,200=−78,835-108,035 + 29,200 = -78,835−108,035+29,200=−78,835
This is the amount I should carry forward to 2025 ?
