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Business & farm
@Mike9241 wrote:
to take an S-Corp loss you need tax basis and material participation. then the loss goes against other income. just tried an example with Turbotax desktop. single, standard deduction, material participation, $50,000 salary from S Corp and $20,000 S Corp loss. result AGI $30,000, taxable income $17,450
Hmm. I may be incorrect on that point. Although I know that in the tax court case I read, the small businessperson (defendant) was denied a lot of deductions because he had formed an S-corp instead of filing as a sole prop and it really hurt him but he was stuck with it (for those tax years.) Professional advice would be warranted.
‎August 17, 2022
4:49 PM
857 Views