Kevin1
Level 2
12-07-2019
08:12 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
S-Corp had a loss that exceeds shareholder basis, so that shareholder has a loss carry forward on Form 6198. The shareholder has decided to walk away from the company.
Is the deductibility of the loss completely gone for the shareholder? What other implications are there?
Best Answer Click here
Labels
itonewbie
Level 15
12-07-2019
08:12 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
What do you mean "walk away from the company"? This is an s-corp. The taxpayer still has shares held in that s-corp. If the taxpayer establishes stock or debt basis in future years, those suspended losses may still be allowed. If the taxpayer disposes of the shares, those suspended losses will be gone.
---------------------------------------------------------------------------------
Still an AllStar
Still an AllStar
