Question

Where do I enter 2023 net operating loss carryover in my 1120S tax return?

Forum|Forum|1 year ago
January 31, 2025
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S corporations do not carry forward losses from one tax year to the next tax year. Instead, net business profits (income) and net business losses are passed through to the shareholder(s) on Line 1 of Schedule K-1 (1120-S) each tax year.

You need to have basis in the corporation in order to recognize a pass-through loss on your personal income tax return. Your basis is tracked on Form 7203. See Instructions for Form 7203: Shareholder Basis.

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