SEHI Carryforward, Form 7203

[G2R]

Client's copy of last year's return filed by another CPA.  On it, there's a statement associated with the 7203 (part III, line 45) that details the carryforward of self employed health insurance. I've never seen SEHI be carried forward.  Anyone have any experience reporting this on a 7203 that could give me some insight?  

On a separate note, the company associated with the 7203 was closed in 2022, so is the CF of SEHI lost?  If not, where in the world on the return could I take this deduction? TIA!

[Lee B]

Interesting question, I had never heard of it either. According to the Form 7203 instructions:

"Loss and deductions in excess of basis are suspended and carried forward indefinitely and the character of the loss and deduction items is retained. 

Part III shows the pro rata allocation and tracks any loss or deduction carryforward."

 I could be wrong but I interpret this to mean that it's not a carryforward of a useable SEHI deduction

but a carryforward of a deduction in excess of basis which disappeared when the corporation closed.

 

[jklcpa]

I haven't heard of this either. If there is excess sehi, it is usually because it exceeds the income from s.e. income, and then that excess goes into medical expenses on schedule A.

[G2R]

13 hours ago, Lee B said:

I could be wrong but I interpret this to mean that it's not a carryforward of a useable SEHI deduction but a carryforward of a deduction in excess of basis which disappeared when the corporation closed.

Interesting.  So possibly they are just giving the REASON for the excess basis a name, but the crux of the information is excess basis limitations.  That definitely makes more sense to me than a CF SEHI deduction. Thanks!