Shareholder Basis Issues

[Tax Sleuth]

Does shareholder basis have to be determined for an LLC that is being taxed as an S Corporation in order to learn if there is any limit on the losses that flow through from Box 1 of the shareholder's K-1 to his or her Form 1040? In other words, do the same rules that apply for an S Corporation apply to an LLC that is being taxed as an S Corporation in regards to having to determine shareholder basis?

[spanel]

Does shareholder basis have to be determined for an LLC that is being taxed as an S Corporation in order to learn if there is any limit on the losses that flow through from Box 1 of the shareholder's K-1 to his or her Form 1040? In other words, do the same rules that apply for an S Corporation apply to an LLC that is being taxed as an S Corporation in regards to having to determine shareholder basis?

An Scorp is an Scorp. The LLC part has nothing to do with it.

Chris

[Burke]

Note that this an LLC being taxed as an SCorp. It is still an LLC, and that does not change under state law.