Thank you for the response! Regarding the carry-forward loss, it is listed in Part III line 35. In column A of this section it lists the Ordinary business Loss for the current year (which I shared in my OP is too high according to my increase in basis) and then in column B 'Carryover Amounts from the previous year' it lists another amount that I did not enter. Perhaps this is carried forward from another year?
I am not familiar with form 7203 but will follow up with my CPA to see whether or not this was used last year. Is that the best way to correct for the loss that should be allowed? Thanks!
