@dmertz wrote:
....because his $20k of S corp loss must be netted against his $30k of W-2 income, resulting in him having only $10k of his own income?
Do ordering rules come into play here? For example, if there were no NOL carryforward to consider, Husband had $0 income instead of $30k on a W-2, the $20k loss from the S corp (reported on the K-1) could still offset income (in this case exclusively from Wife) on a MFJ return, could it not?
Also, am I reading the following passage from Publication 536 wrong?:
Separate to joint return.
If you and your spouse file a joint return for a carryback or carryforward year, and were married but filed separate returns for any of the tax years involved in figuring the NOL carryback or carryover, treat the separate carryback or carryover as a joint carryback or carryover.
