@AliciaP1
You are AMAZING! These examples are SO helpful! Thank you, that's exactly what I needed; I get them.
One last question... please let me know if the following is correct?
1) So, this Form is really to help figure out how much you can reduce your business income by (i.e., if there were losses), which makes sense, since this is in the Income section of the Form...correct?
2) Conversely, it is not a mechanism to LOWER the amount of taxes owed because you had business losses... correct? (i.e., in your examples, if in Yr 3, there was 0 additional investment AND a -$12,000 business loss, then the debt carryover would be -$2k from Yr 2 and -$12K (current year 3's debt basis) for a total of -$14k carryover and a Stock Basis of $0 (but it's not like taxes are reduced by one's tax rate x $12K ). Do I have this right?
Sending you a virtual hug; thank you!
