RobertB4444
Expert Alumni

Get your taxes done using TurboTax

In an S-Corp the shareholders have to have sufficient basis in the corporation to support the loss.  Otherwise it is carried over in the corporation instead of passing through onto their personal returns.

 

You should check to see what the starting basis is for your shareholders in TurboTax.

 

@OliverBrown 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"