Drake Tax - 1120-S: Loss Carryover

Where to enter a loss carryover on an 1120-S

A "share" (or portion) of an S corporation's income, losses, deductions, and credits is "passed through" to each shareholder. The corporation itself is responsible for the tax on certain built-in gains and passive income.

Generally, each shareholder will report these items on his/her personal tax return and will be taxed at individual tax rates. Each shareholder should receive a K1 from the corporation showing his/her share of each type of income, loss, deduction, or credit.

For more information, see the Instructions for Form 1120-S and K-1 Instructions.