The Portable MBA in Finance and Accounting by Theodore Grossman & John Leslie Livingstone
Author:Theodore Grossman & John Leslie Livingstone [Grossman, Theodore]
Language: eng
Format: epub, mobi
ISBN: 9780470526316
Publisher: John Wiley and Sons
Published: 2009-10-08T05:00:00+00:00
The Internal Revenue Code, not surprisingly, places limits on the amount of loss that can be passed through to an owner’s tax return. In a subchapter S corporation, the amount of loss is limited by a stockholder’s basis in his or her investment in the corporation. Basis includes the amount invested as equity plus any amount the stockholder has advanced to the corporation as loans. As the corporation operates, the basis is raised by the stockholder’s pro rata share of any profit made by the corporation and lowered by the pro rata share of loss and any distributions received.
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