Thnx dkh

The k-1 is from an S Corp that my client materially participates in (full time ) and earns a salary from.

Due to the pandemic he suffered losses in 2020 & 2021. Only able to have basis due to PPP loan forgiveness in 2021.

2020 loss was carried over to 2021 and was shown as non-passive loss on 2020 return.

Hope this helps.