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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16559
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I have an S-Corp with a profit this year of $50,000 that is

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I have an S-Corp with a profit this year of $50,000 that is on my-k1 line 1. However, I still have a carryforward loss reported on my basis statement.

Do I report zero on my k-1 personal return for net income due to the fact that I still have a loss carryforward?
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

Yes, you are correct. Your basis increases with your net income distribution and you can deduct the loss to the extent that it does not exceed your basis. So, you can use the loss to the extent that you have income - so long as your basis does not go below zero. Then once again losses are suspended and you can deduct them once you have basis again.

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Thank you for the positive rating. Please remember me the next time you have a financial question. Simply enter "MyVirtualCPA" in the subject of your question, and it will be routed directly to me. Thank you again for using JustAnswer