Year-End Business Planning Provides Tax Savings: Corporate Losses

Increase your basis in a partnership or S corporation if doing so will enable you to deduct a loss from it for this year. A partner’s share of partnership losses is deductible only to the extent of his partnership basis as of the end of the partnership year in which the loss occurs. An S corporation shareholder can deduct his pro-rata share of an S corporation’s losses only to the extent of the total of his basis in (a) his S corporation stock, and (b) debt owed to him by the S corporation.  Contact your CPA for a review of your options.

© 2010 Thomson Reuters/RIA. All rights reserved

© 2010 Thomson Reuters/RIA. All rights reserved

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