Confused how to best take advantage of the NOL carry forward to offset other ordinary income for the client.  Would the S-corp have to stay an active entity until the NOL is used up for him to get a loss shown on a K-1 each year?   The corp will no longer be doing business as it was major equipment that was sold at a large loss.  But for tax purposes, it could continue to file the loss and issue the K-1 for the owner.