Hello all:
I have a client who has an S-Corp with Losses every year it has operated. Roughly 69,000 in total losses - He started with giving the S-Corp 30,000 in cash - (negative basis). The S corp held land at 83,000 fmv as of 12/31/2010 of 75,000 - 2010 operating loss of 1,200. The S Corp has never had a profitable year. We are making 2010 the final return. Question I know s corp needs 4797 to show the transfer of land back to the owner. Question how should I handle the negative basis? I am assuming he can not claim the 12k loss on his return (file form 6198) However he has another S - Corp which will have a Income of 15k. 2nd question can I use the negative 12k against the income of 15K
Thanks
I have a client who has an S-Corp with Losses every year it has operated. Roughly 69,000 in total losses - He started with giving the S-Corp 30,000 in cash - (negative basis). The S corp held land at 83,000 fmv as of 12/31/2010 of 75,000 - 2010 operating loss of 1,200. The S Corp has never had a profitable year. We are making 2010 the final return. Question I know s corp needs 4797 to show the transfer of land back to the owner. Question how should I handle the negative basis? I am assuming he can not claim the 12k loss on his return (file form 6198) However he has another S - Corp which will have a Income of 15k. 2nd question can I use the negative 12k against the income of 15K
Thanks
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