My wife and I purchased a business last September and established it as an S Corp. We reported a loss for the year, however, I am not sure if I should report the entire loss on my personal returns given our tax basis. We had a CPA complete the returns for the business and from the Schedule K-1, the loss is ($6,565), however, on the basis worksheet, it states the total allowed loss is ($5,546) with a loss to carryforward of ($1,019). Should I report the allowed loss of ($5,546) on our personal returns as opposed to the total loss for the year?
