Hello,

I’m looking for some guidance on Form 172 (NOL) while preparing a 2024 individual tax return for Taxpayer X.

X received a Schedule K-1 reflecting a $34,000 loss from an S corporation in which she holds a 50% ownership (it’s a bar). This loss caused her AGI to be negative on Form 1040.

Now, Form 172 (NOL) is appearing in the return, but I’ve never encountered this form before. I'm trying to confirm whether its presence is expected in this situation or if I may have made a mistake somewhere.

Any insights would be greatly appreciated. Thank you so much for your help!