My client has converted her sole proprietor to an S-Corp in 2012. She has a NOL from 2009 which she has been carrying forward. What happens to that NOL? I know the loss would be suspended if it was incurred as a C-Corp. On the 3805Q for the 1120S it asks if the loss was incurred while the S-corp was a Corporation, S-corp, Exempt Organization or LLC. Since it was none of those does the NOL stay on the personal return then? I can't find an answer to this but it may just a be common sense answer that I am missing lol.