Non passive S Corporation was terminated in 2022. The prior preparer had (incorrectly in my opinion) treated any losses as passive and we are still showing Form 8582 with the losses from prior years on the Form 1040. How do I get the 8582 to release these losses? The S Corp K-1 is marked as final and it is shown as having been dissolved.
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I would first back up a bit ... if it never was passive, then there are no passive carryovers. But the prior returns can be amended.
If you feel the passive carryovers are valid, (1) have you entered the carryover in column b of "Section A" on the K-1" and (2) right above Box 1 of the K-1, there are two "Quickzoom" buttons. Hit the top one for the disposition and then on that worksheet be sure to check box 1a for the "fully taxable transaction".
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