What did you do regarding the 7203 for 2024? It doesn't work to limit losses if you have insufficient basis
Example: if you had a $50K loss but had zero tax basis as reported on the 7203, the form will show the loss as a carryover (line 47 column e), but in reality schedule 1 will show the $50K loss.
I would correct the 2024 7203 to show your proper tax basis at the beginning of the year. The IRS may question this because of the 2023 Form 7203 being incorrect.
If there is a loss limitation due to insufficient basis, the form that needs to be used is Form 6198 - at-risk which should limt a loss deduction to your basis.
