S corp loss in excess of basis "suspended"
See original discussion at http://www.taxalmanac.org/index.php/Discussion:S_corp_loss_in_excess_of_basis_%22suspended%22
When is the loss in excess of basis deducted on the shareholder return. I understand when basis is increased but what about a total disposition or closing of the company?
Additional facts posted in a different discussion, transferred here:
Is the distribution in excess of basis treated as a short term or long term capital gain? My client has the excess distribution over a few years in a corporation that is 8 years old. Also the corporation is in debt 250k which is how my client was able to take the excess basis distributions. My client has personally guaranteed repayment and is repaying the loan to the bank. Is the excess distribution taxable? The debt is primarily the responsibility of the S corp.
( Asked 07/05/09 04:48 AM in TaxAlmanac, Views by community 30 )