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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7147
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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I closed a publishing company that I had 9 years last year

Customer Question

I closed a publishing company that I had for about 9 years last year and had a slightly negative year in my Sir Speedy business. I had a loss of -$24,603 on line 41 of my 1040. I do my taxes every year with TurboTax. I waived being able to carry back my NOL. I’m now trying to figure out what amount for NOL I can put as a negative amount on the Other Income line on my return for 2015.
I had an -$18,284 1231 loss on my K1 for my publishing company for non-recaptured amortization of trademarks & non-compete from the purchase of that business. My question is whether that amount is considered a nonbusiness capital loss? If it is, then I would need to deduct it from my NOL and with the other adjustments it would bring my NOL carry forward down to zero.
Submitted: 1 year ago.
Category: Tax
Expert:  Stephen G. replied 1 year ago.

Where is that 1231 loss reported on your K-1? What line?

Is this from an S-Corp?

If it's from your publishing company, in which you were an active participant, it is non-passive & should be reported on Line 2 of the Form 4797 in accordance with the Partner's Instructions to the K-1:

If the amount is either (a) a loss that
isn't from a passive activity or (b) a
gain, report it on Form 4797, line 2,
column (g). Don't complete columns
(b) through (f) on line 2 of Form 4797,
Sales of Business Property. Instead,
enter “From Schedule K-1 (Form
1120S)” across these columns."