New client was part owner of S-Corp for several years and shows loss carry-over of $118,040 and he has a zero basis. In 2006, company changed to an employee-owned company and client did not receive a K-1 this year for the S-Corp, just a W-2. Will the client ever be able to deduct the $118,040 loss??
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You need more info... did the stockholder sell his stock? Is he still an owner? Is the corporation still a S-corp or now a C-corp? -
S-Corp Shareholder
I will check with taxpayer, but so I know before asking taxpayer - if he is still part owner of the corporation and owning shares, wouldn't he receive a K-1?? I am not very knowledgeable about employee-owned corporations or the reporting requirements of that type of corporation. If an S-Corp changes to an employee-owned corporation; how does it affect the reporting? Taxpayer did say he still owned the largest # of shares in the corporation. If that is the case, why wouldn't he receive a K-1???Comment
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If the company changed to a C corp, he could still own the largest number of shares, but I have not heard of a C corp issuing K1s.
LTOnly in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut".Comment
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A C-corp does not have K1's as the income is not distributed for tax to the shareholders, rather the corporation pays the tax.Comment
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take a look at the last K-1 your client received and examine what percentage of stock this client owns in the corp.Dave, EAComment
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S-Copr Shareholder
If the corporation changed from an S-Corp to a C-Corp in 2005 and taxpayer had an at-risk carryover loss of $118,040, is the carryover loss lost if post-termination transition period has ended?Comment
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Unable to research at this time, but I would think not.Dave, EAComment
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