I was not saying that what was reported on your tax returns was right or wrong. My point is only that you should not be able to carry the loss forward as a 465(d) carryover and in that same year use the loss to reduce in taxable income, since doing so would be subtracting the loss from income twice. If the losses carried over from 2020, 2021 and 2022 as 465(d) losses were not also used to reduce taxable income in those years, then the result on your 2023 tax return would not be deducting the losses from income twice but would instead be reducing taxable income only on your 2023 tax return. In other words, if the loss did not appear in Part I of your 2020, 2021 and 2022 Schedules 1, you would not be subtracting the losses twice.
