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  • S-Corp losses

    I finally got my K-1 for the S-Corp that I am a shareholder in. The S-Corp
    had a loss this last year. I had been figuring that this would reduce my
    taxes but when I went through Turbotax and entered my K-1, it never asks
    for the loss amount that is in line1 of the K-1.

    Do losses not flow to the individual shareholders in a S-Corp, or are they
    just held over within the S-Corp to go against future income?


  • #2
    S-Corp losses

    On 8/3/05 9:01 AM, in article
    [email protected] uttaxes.com, "tagus"
    <[email protected]> wrote:
    I finally got my K-1 for the S-Corp that I am a shareholder in. The S-Corp had a loss this last year. I had been figuring that this would reduce my taxes but when I went through Turbotax and entered my K-1, it never asks for the loss amount that is in line1 of the K-1. Do losses not flow to the individual shareholders in a S-Corp, or are they just held over within the S-Corp to go against future income?
    Well, I can't speak to how TT does this; however, the K-1 information should
    be entered somewhere in the program. But whether the loss is usable is
    another question entirely. First, how much basis do you have in the stock
    and loans you've made to the corporation? Form 6198 handles that question.
    Second, are you an active or passive shareholder? Form 8582 handles that
    question. If you get through all those hoops, then yes, the loss is
    allowable against other income.
    --
    Tom Healy, CPA
    Boulder, CO
    Web: http://www.tomhealycpa.com

    Comment


    • #3
      S-Corp losses

      On 8/3/05 9:01 AM, in article
      [email protected] uttaxes.com, "tagus"
      <[email protected]> wrote:
      I finally got my K-1 for the S-Corp that I am a shareholder in. The S-Corp had a loss this last year. I had been figuring that this would reduce my taxes but when I went through Turbotax and entered my K-1, it never asks for the loss amount that is in line1 of the K-1. Do losses not flow to the individual shareholders in a S-Corp, or are they just held over within the S-Corp to go against future income?
      Well, I can't speak to how TT does this; however, the K-1 information should
      be entered somewhere in the program. But whether the loss is usable is
      another question entirely. First, how much basis do you have in the stock
      and loans you've made to the corporation? Form 6198 handles that question.
      Second, are you an active or passive shareholder? Form 8582 handles that
      question. If you get through all those hoops, then yes, the loss is
      allowable against other income.
      --
      Tom Healy, CPA
      Boulder, CO
      Web: http://www.tomhealycpa.com

      Comment

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