Basis Limitations Archives

Knott Learning

IRS Form 7203 – Sale of S Corporation Stock with Suspended Losses

Form 7203 tracks an S corporation shareholder's stock and debt basis in an S corporation. If the shareholder doesn't have sufficient basis, any losses passing through from the S corporation are generally suspended losses.

Jason Knott2024-07-04T11:45:21+00:00Tags: Basis Limitations, Form 1120-S, Form 7203, Sale of Stock|

IRS Form 7203 – S Corporation Loss Limitations on Stock Basis

S corporations are pass through entities for federal tax purposes. If a shareholder is allocated losses which exceed their basis, the losses are generally suspended. This article covers an example with Form 7203.

Jason Knott2024-07-04T14:59:09+00:00Tags: Basis Limitations, Form 1120-S, Form 7203, S Corporation|

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