DMERTZ, thank you for your response.
So DMERTZ, Question:
Let's say:
2020: Schedule C: Line 29 Tentative profit or (loss). Subtract line 28 from line 7. . . . .. . . . . . . . -30,000 (loss)
2021: Schedule C: Line 29 Tentative profit or (loss). Subtract line 28 from line 7. . . . .. . . . . . . . . -20,000 (loss)
2022: Schedule C: Line 29 Tentative profit or (loss). Subtract line 28 from line 7. . . . .. . . . . . . -10,000 (loss)
2023: Schedule C: Line 29 Tentative profit or (loss). Subtract line 28 from line 7. . . . .. . . . . . . 10,000 (profit)
Taxpayer has no other income.
Taxpayer only has Schedule C (LLC/sole proprietor) income of respectively -30k,- 20k, -10k, 10k.
3 years of Schedule C losses - 1 year of profit.
I entered each prior year's loss on Line 48 in current year's schedule C as SECTION 465(d) CARRYOVER.
Then, for 2022 I entered the resulting negative number of -$60k of Line 29 of Schedule C
(Tentative profit or (loss). Subtract line 28 from line 7),
on Line 3 and Line 10.
Line 3 of Additional Income and Adjustments to Income.
Line 10 of Additional Income and Adjustments to Income (Schedule 1).
That amount of -$60k then in turn appears on the Form 1040, Line 8, Other income from Schedule 1, line 10 .
In 2023, -$50k will show up on Line 8 of Form 1040.
That's how I have the Schedule C losses of 2020-2022 added up, and showing in 2022:
As a sum of the prior years and the current year,
the losses eventually show up on Line 8 as a negative number in 2022.
Did I do it wrong, DMERTZ?
I fear I might have.
I carried over WITHIN the Schedule C on line 48, all prior year's losses.
This is wrong, correct?
How should I do it? (There has been no other income than the Schedule C income).
Should I convert prior years' Schedule C loss which I added (as a sum) onto line 48 of current year's schedule C as the SECTION 465(d) CARRYOVER,
instead as an NOL on line 8a?
And forget about the whole 465(d) CARRYOVER on line 48 of Schedule C as I now have it?
TunaMom
