I filed my final 1120S return in 2024 and need to amend it. I was the only shareholder. Prior to closing, the company had a stock basis of $28k. Prior to closing, I had an outstanding shareholder loan of $57k. An accountant I consulted with at the time told me I could not take any losses, because the loans represent losses already passed through to me. So the return was filed without reflecting the long-term loss.
I had to file in Nov. 2024 before the 2024 forms were released, so I could not use Turbo tax, so I sent the return is as prepared by the accountant and the return was accepted. I bought Turbo Tax business to see I could get a different outcome. The 1120s K-1 shows long-term losses of stock basis, but loss of debt basis reported on line 30 of the worksheet seems to flow nowhere, even though both are shown as long-term capital losses in Part III of the worksheet. Why doesn't the K-1 show the total of losses of stock and debt basis as a long-term capital loss? I looked at the various codes for line 16 and line 17, but none seem appropriate.
On the 1040, do I report reduction in debt basis as a long-term capital loss on Schedule D? Is it considered a security? Should it be reflected on schedule E or Schedule 1? The challenge with that is that there was no rental activity last year, and no income. Activity was simply closing out the business. So am I still a real estate professional?
On the personal return, a QBI carryover loss of $36k showed on schedule 1 as a Net Operating Loss. While my husband is still working, he has W-2 income. My understanding is that you can only take those losses again QBi income, so I assume the flow-through on the 1040 is a mistake, and I can't take that deduction?
Thank you for your help.
