Yes, I confirm, Husband has basis in his S-Corp X to deduct full loss from his S-Corp that occurred in 2018.
True. The S-Corp X had a loss of 20K in 2018. Husband's 2018 W2 Wages (from a source unrelated to his S-Corp X) were 30K, therefore his S-Corp X loss could be fully offset Husband's 30K W2 wages leaving 10K of his W2 to absorb 10K of NOL carryover amounts from years prior to 2018.
But, what this means is that Husband cannot offset any of his loss from Wife's 100K 2018 W2 wages, even though they were married in 2018 and file joint tax return for 2018. Is that a fact?
