The figure you see for Section 465 (d) carryover is supposed to be the amount of loss you weren't able to take last year and may be able to take this year. [A loss that was disallowed because of the at-risk rules is generally treated as a deduction from the same activity in the following tax year (a carryover).[
But since the business started in 2019, you shouldn't have a Section 465 (d) carryover from prior years. You can clear this up by adding a negative "Miscellaneous" expense. Please follow these steps:
- On the screen, Your [XX] Business, go to the Business Expenses section and click the Start/Update box next to Other common business expenses.
- On the next screen, click the Start/Update box next to Other miscellaneous expenses.
- Enter the carryover figure as a negative number and enter the description as Section 465 (d) carryover offset.
