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michaelpmoriarty
Level 1

If I had an S-corp that closed last year and had a loss am I able to write off the loss this year as well

I owned an S-corp for 10 years the S-corp closed last year and I had an income of 25,000 and my S-corp had a loss of-47,509. Am I able to carry over that loss to this years taxes?
7 Replies
JeffreyR77
Expert Alumni

If I had an S-corp that closed last year and had a loss am I able to write off the loss this year as well

Yes.  Your S-Corporation is a pass-through entity.  Any profit or loss of the entity will pass-through from the Form 1120-S tax return to your personal tax return.

michaelpmoriarty
Level 1

If I had an S-corp that closed last year and had a loss am I able to write off the loss this year as well

Hi thank you for your response. I can do this although my Corp closed last year and I did not need to file corporate taxes this year?

DawnC
Expert Alumni

If I had an S-corp that closed last year and had a loss am I able to write off the loss this year as well

If your S-corp did not file a tax return in 2020, there is no loss to report on your personal tax return this year.  Was the S-corp loss in 2019 reported on your 2019 personal tax return?   You should have had a K-1 from the S-corp that year.   If your S-corp closed in 2020, it still needs to file a final tax return in 2020.   

 

Steps to Take to Close Your Business

 

  1. File a Final Return and Related Forms
  2. Take Care of Your Employees
  3. Pay the Tax You Owe
  4. Report Payments to Contract Workers
  5. Cancel Your EIN and Close Your IRS Business Account
  6. Keep Your Records
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AmeliesUncle
Level 11

If I had an S-corp that closed last year and had a loss am I able to write off the loss this year as well

If 2019 was the final year of the corporation, it looks like your personal return had negative income, which means you have had a Net Operating Loss in  2019 on your personal tax return.

 

TurboTax does NOT calculate Net Operating Losses, so you may want to go to a tax professional.

michaelpmoriarty
Level 1

If I had an S-corp that closed last year and had a loss am I able to write off the loss this year as well

Yes, my S-crop had a loss in 2019. My income was vey low and wondering if this loss can also be carried over to this years taxes as well. If so why doesn't turbo tax carry it over.

 

Thanks for your help

 

michaelpmoriarty
Level 1

If I had an S-corp that closed last year and had a loss am I able to write off the loss this year as well

That is correct. Would I be able to carry that loss over to this year as well?

JeffreyR77
Expert Alumni

If I had an S-corp that closed last year and had a loss am I able to write off the loss this year as well

Yes, you should be able to do that.  Check this response from MarilynG1: 

 

 

Type Nol in the search box, then click on the Jump to link.

 

You should be able to enter your Net Operating Loss carryover amounts without issue. 

 

Check your Federal Carryover Worksheet from your 2019 return for the amount. 

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