scorp k1 loss (non passive)

[JT2307]

In a prior year shareholder received a K1 with a large loss that he was not able to take on his personal return.(only took partial) Can he carry this forward? He is active sole shareholder.

[TaxGuyBill]

a K1 with a large loss that he was not able to take on his personal return.(only took partial)

Why was he not able to take it? Basis limitations?

[JT2307]

Basis

Yes he did not have enough basis - now he has more than enough and I would like to utilize.

[TaxGuyBill]

Yes, now that he has Basis the losses can be used.

Be aware they are reported separately, so you will need to figure out how your software does that.

https://www.irs.gov/instructions/i1040se#idm140169896175504

[JT2307]

Thank you I thought I was correct but everything I kept reading referred me for to passive losses.