Suppose I have a carryover loss of 20K from my retail account. This year, I make 30K from a prop firm with a K-1, how do I take my carryover loss to reduce my K-1 gain? How should I do that in my 1040?
K-1 has lines that breakdown the types of income such as Dividends, Capital Loss/Gain and will flow to the Schedule D and net accordingly with last years C.L. Carryover. See Schedule D Lines 5,6,12,14 http://www.irs.gov/pub/irs-pdf/f1040sd.pdf el surdo not-a-CPA>>>>but works for food or beer!