Thread: SCorp Losses
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Old 08-31-2004, 11:42 AM   #4 (permalink)
gar1976
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Quote:
Originally Posted by gar1976
Before you get too carried away, remember for s Corps you can only deduct losses up to your basis in the corporation. For S Corps, basis is:

Capital contributions

Shareholder loans to the company

So really, you can only deduct as losses the amount you've put into the company one way or the other. Seems silly to create a S corp in your case just to do that, but maybe it's me.
Oh, and also your basis includes net income, plus or minus some adjustments.
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