Husband a Wife married in 2018 and are filing joint return for 2018.
Husband has a total NOL of 100K carried over from 2017 and prior years when he filed individual returns.
Husband has another NOL of 20K in 2018 from his S-Corp X where he is 100% shareholder.
Husband has W2 income of 30K in 2018 from another source.
Wife has never had a NOL and has a W2 income of 100K in 2018 from her own S-Corp Y where she is 100%
shareholder.
I understand that Husband's allowed deduction for NOL carryover NOL from years prior to 2018 when he was single
is limited to his own 2018 income therefore it is 30K and is not limited to 80% of his income.
Question 1:
Can Husband in addition to deducting 30K, deduct his 2018 S-Corp X NOL of 20K, in 2018 joint tax return? This
will be deducting Husband's 2018 20K NOL from his Wife's 2018 W2 income. This would result in total NOL
deduction of 50K on 2018 joint return. Is that possible?
The Publication 536 is quite confusing and I could not get my answer from studying it.
Question 2:
How do I enter this to TurboTax Home and Business? TurboTax just adds the numbers and that may be incorrect.
Thank you in advance.
