360 Tax Martin
Level 3
09-21-2020
11:12 AM
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Can an S-Corporation with passive losses which are subject to at-risk limitations, use these losses against another s-corporation's passive income? This would be on the individual return of course. Thank you in advance for your inputs!
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TaxGuyBill
Level 15
09-21-2020
11:40 AM
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No. The order of limitations are (1) Basis, (2) At-Risk, then (3) Passive.
Because it is limited due to At-Risk limitations, it stops there.
sjrcpa
Level 15
09-21-2020
11:41 AM
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At risk rules apply first. If not at risk, there is no passive loss to be used against other passive income.
The not at risk loss carries over until shareholder is at risk.
Ex-AllStar
