I have a single member S Corp with a NOL carryforward to plan for in 2024.

Forum|Forum|1 year ago
September 5, 2024
1 reply
10 views

Confused how to best take advantage of the NOL carry forward to offset other ordinary income for the client. Would the S-corp have to stay an active entity until the NOL is used up for him to get a loss shown on a K-1 each year? The corp will no longer be doing business as it was major equipment that was sold at a large loss. But for tax purposes, it could continue to file the loss and issue the K-1 for the owner.

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PhoebeRoberts

Intuit Community Champion

S-corps don't have NOLs. Do you mean the shareholder has a 1040-level NOL?

C

cjdykemanAuthor

Level 3

As usual, I was trying to out think the situation. He had over $22K repairs to a small aircraft in 2023, but made minimal income with the S Corp. Then it needed another repair that would be in excess of $40K that was not done. He sold the aircraft for $1 in 2024. It had depreciated out for the most part, minimal capital loss if any. No gain. Was trying to see what was best for 2024 return would look like if there could be a loss carryover. He's closing the business, in 2024. He has enough other income that getting a negative K-1 for 2023 will be fine and close it up next year. I thought about doing the repair as a depreciation improvement for a capital loss, but he has no other investments that produce gains to off set. Think I just need another cup of coffee (or a nap!) Thanks for answering.

sjrcpa

Level 15

This is fraught with many perils.

Probably no NOL.

The more I know the more I don’t know.

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