Erin C. asked
A single-member LLC, taxed as an S-Corp, reported a $10K loss for 2014 and a $9K loss for 2015. The company is closing in 2016 with no assets or liabilities. The member did not perform basis limitation calculations. The company equity at the end of 2014 was $8K, attributable to the member. Questions: 1) Is it correct that the member's basis is measured after the loss, even though the losses were funded through contributions? 2) If the individual amends prior tax returns to suspend losses and shows zero basis for 2015, can they unsuspend the losses when the company is dissolved? 3) Are unreimbursed expenses reported on Schedule A also limited by basis?
November 7th, 2024
Jeremy B. answered
1) Yes, the member's basis is measured after the loss. Contributions from the shareholder increase b...
November 7th, 2024
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