You mentioned - I have a loss carryforward on my personal taxes of $650K from a various businesses or investments gone bad.
We need to be clear how these losses are reflected on your tax
We need to differentiate
- capital loss
- that may be used to offset capital gains
only and up to $3000 may be used to offset other types of taxable income.
- passive losses - that may be used to offset only passive income
- business loss that will generate NOL - net capital loss - for the year such loss occurred - such NOL is generally carried back for two years - and the rest is carried forward.
So - we need better understanding HOW these various businesses or investments losses are reflected on your tax return.
Then - we need to analyse how that LLC profit is reported on your K1 - specifically - in which boxes and which amounts are reported - that will give us
direction for tax treatment of these items on your individual tax return
I will help you with specific items as needed.
But generally - yes - if you have NOL carried forward from previous years - that NOL may be used to offset your current year taxable income.
Please let me know if you need any help with reporting