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S Corp

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Level 2
last updated ‎April 09, 2020 1:25 PM

I have an S-Corp that has portfolio investment income.  Does this not count as part of their basis?

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Highlighted
Level 15
last updated ‎April 09, 2020 1:25 PM

The investment itself really isn't any different than a CD in a bank.  The only difference is the earnings being generated from the investment.  Instead of just interest, you could have interest and dividends and possibly a capital gain or loss to report.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.

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Highlighted
Level 14
last updated ‎April 09, 2020 1:25 PM

Yes it does.


ex-AllStar
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Level 15
last updated ‎April 09, 2020 1:25 PM

How does everything look once you have the balance sheet prepared?

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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Highlighted
Level 2
last updated ‎April 09, 2020 1:25 PM

The balance sheet balances.  I'm sorry but this is the first time I have had any business do any investments with investment companies, not a CD in a bank.  I have Lacerte to balance with the portfolio income & expenses on the M1 & other sch K items. But nothing really showing up on the K1. Your help will be greatly appreciated.

 

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Highlighted
Level 15
last updated ‎April 09, 2020 1:25 PM

The investment itself really isn't any different than a CD in a bank.  The only difference is the earnings being generated from the investment.  Instead of just interest, you could have interest and dividends and possibly a capital gain or loss to report.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.

View solution in original post

Highlighted
Level 2
last updated ‎April 09, 2020 1:25 PM

Mr. Iron Man--

I am correct that Unrealized gains & losses are not included on the K1s?  

Also are investment fees deductible, if so, would that be box 12 cod L deductions - portfolio (other)?

Thank You so much for helping in advance

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Level 14
last updated ‎April 09, 2020 1:25 PM

Unrealized gains and losses are not taxable income and would not show up on the K-1 (unless certain mark to market (?) elections have been made.)

Investment expenses are no longer deductible by individuals.


ex-AllStar