Hi @LudwigVan_fan Thank you for your thorough and well thought out reply. I see why I had contagious confusion. The distributions don't play in. Its the S corp net income (the amount is very close to distributions) that is the result of the asset sale (held for 15 mos, cost:$1 + $1250 cost of sale, netting $23K). I think I should be able to get it off of 1040 Ln 8 and onto Sch D Ln 11A where it will be absorbed in loss carryover. Does that make sense? But now I'm not sure how I do that. By the way, its a single member S corp and I'm delinquent on completing the 1120S and therefore the K1 (which is why I mentioned that I can still change it if needed).
