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Bonus Depreciation and Shareholder Basis for an S-Corp

lboydjdd
Level 2

Need help.  Is a loss caused by bonus depreciation allowed to the shareholder even if they have no stock basis?  I am viewing the basis schedule in Lacerte and the K-1 and it is showing the losses/deductions in excess of basis as suspended.  If I import the k-1 into the shareholder's return, it is allowing the loss.  Is this correct?  

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3 Replies 3
IRonMaN
Level 15

No basis = no deduction for loss.

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Terry53029
Level 11
Level 11

As ironman said "no basis no loss" When you say it is allowing the loss, do you mean it is on the K1 issued to shareholder, if so that is correct. It is up to you to only allow loss up to basis on shareholder's 1040  K1

qbteachmt
Level 15

I found this article for you:

https://proconnect.intuit.com/community/schedule-k-1/help/basis-limitation-frequently-asked-question...

 

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