luckyaces09
Returning Member

S Corp loss carryover

Hello,

 

At the end of 2020, my S Corp had a negative balance on its M2.

Would I carry over that over to my 2021 1040 in line 5 other income and report it as negative?

 

If so, would this negative balance be considered a "Prior year losses which you were not allowed to deduct due to the application of the passive activity loss rules" on the K1?

Thank you