If my S-Corp stock basis is 0 at the beginning and end of the year, why is the K-1 loss deducted from the taxable W-2 earnings on the 1040?
Trying to understand if I am doing something very wrong.
Form 7203: lines 1, 2, and 15 = all are 0, and line 43 is a loss.
Schedule E: line 31 is the same loss as 7203 line 43.
1040 Schedule 1: lines 5 & 8 same as Schedule E line 31.
1040 page 1: line 9 confirms same loss as all others.
TIA.
