I just finished a 1120S and the client had a 111,000. loss which freaks me out a bit.so with the K-1 loss going on his personal return he also had a NOL from the year befor and had 38,000 refund from the year befor that we carried over as estimates so now his acutal refund is $51,000. I am a little worried to ask for that much money from the IRS. Any Advise?
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It's just zeros...
and it's just a drop in the bucket compared to the billions that congress throws around.
But...
carefully check to make sure the shareholder has basis for the loss. If he is losing money borrowed by the corp, it's likely the loss is suspended till some basis shows up.
The shareholder has to have money in the game before you can lose it. -
Check
Yes, concur with above post, check basis and also the at risk form 6198. I had one that 6198 (at risk) produced taxable income on the return.
SandyComment
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like the others said, check to see that he has sufficient basis.Comment
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