I have an investment in an S corp that had a loss in 2019 that very slightly exceeded my investment (and due to the very small amount did not treat it as a carry over loss), and unfortunately another loss occurred in 2020. The only investment this company has is an investment as a limited partner in a limited partnership ship that I work at full time. I believe that I cannot take this loss reported on the 1120-S on my return because even though my entire investment is at risk, as an investor in a limited partnership there is no risk above that investment - but there does not appear to be a way in the software to do this unless I say that I did not materially participate in the business - which of course I did. Does anyone have a better way of reporting this?
Also, I have the same situation with a 1120-S with the general partner - and it is not at all clear whether I have risk over and above my investment in the general partner - can I claim that loss? and if so must I report that income if the company dissolves without that additional liability?
