Allowed loss amounts on form 7203

[LXXVII]

Are allowed loss amounts on form 7203, column C  suspended and a PAL generated and reported on 8582 for a passive shareholder when there is no other passive income?

[Mike9241]

surprise the 7203 doesn't work to limit losses. it merely info for the IRS so it can see what's supposed to be and what you did.  Passive loss from an s-corp k-1 flows directly to the 8582 to determine allowed and suspended.  losses. that has nothing to do with the 7203 which is a tax basis computation. even if a loss is suspended for PAL purposes it reduces tax basis. if you have losses in excess of tax basis that creates a more complicated entry  requirement so that only the proper mount of loss is deducted through the 8582

[LXXVII]

@Mike9241 Yes, loss limited by basis — column c shows allowed amounts. If passive activity, and no other passive income, then these allowed amounts (Column C) are suspended by passive loss rules, correct?