My son is a partner in an LLC for his rock band. The first year they existed (2018 tax year) they hired an accountant to file their business taxes. He got a K1 from that accountant but it showed a loss and no distribution. I don't remember who told me this (might have been my neighbor who does taxes or maybe even CB) but when I was trying to figure out what to do with it on his personal taxes, I was told since it is a loss and he had no tax liability (just a W2 from a part time job) just to keep it with his tax records and it didn't need to be reported on his return.

Anyway...fast forward to this tax year (2019). The new K1 is still an overall loss for his share of the partnership but each partner did take a small distribution this year. While entering it all in to Taxhawk (again - for his personal income portion of his return) there is a question where he can submit losses previous years' K1s. Can he enter his share of the loss from 2018 there, to offset the income from the small distribution? If so, next year can he do the same (enter the overall loss from this year in that same box)?

TIA.