CA S Corporation NOL

Technical topics regarding tax preparation.
#1
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S Corp makes less than 1 million. 2021 shows a 10K loss. CA has form 3805Q to calculate the NOL carryover. However, the 10K loss is also reported on the shareholder's K-1. The S corporation's form 3805Q says "10K carryover to 2022. If the 10K loss is taken by the shareholder on the CA K-1, how can there be a NOL carryover on the CA S corporate return?
 

#2
JAD  
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There's the NOL for purposes of the corporation's 1.5% tax. There's also the loss that flows through to the shareholder. You have 2 different entities and the loss impacts both tax calculations.
 

#3
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JAD wrote:There's the NOL for purposes of the corporation's 1.5% tax. There's also the loss that flows through to the shareholder. You have 2 different entities and the loss impacts both tax calculations.


Makes sense. Thank you.
 


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