Disallowed SCorp Loss

[Maribeth]

[QUOTE=BHoffman;77413]Bob - I misstated. The loss is because of bonus depreciation. He did take distributions in excess of basis as well and I entered that on Sch D as a short term capital gain.

I believe that those excess distributions are considered long-term capital gain and not short term. It might make a difference on your client's tax return.

Maribeth

[BHoffman]

[QUOTE=Maribeth;77477]

Bob - I misstated. The loss is because of bonus depreciation. He did take distributions in excess of basis as well and I entered that on Sch D as a short term capital gain.

I believe that those excess distributions are considered long-term capital gain and not short term. It might make a difference on your client's tax return.

Maribeth

Yes, first I misspoke and then I mistyped. Should be LT. Glad you posted