Discussion:MFS-50/50 shareholder in s-corp
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Revision as of 02:15, 10 April 2009 Rgtaxservice (Talk | contribs) (Your client woul) Next diff → |
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| {{ForumReplyPost|UserID=Sjpaccounting|Date=10 April 2009|Text=That is what I figured...it didn't seem right to me. Sucks to be the wife in this year's taxes...I fear she will get in trouble for deducting the entire business loss this year...do I tell my client that little known fact?}} | {{ForumReplyPost|UserID=Sjpaccounting|Date=10 April 2009|Text=That is what I figured...it didn't seem right to me. Sucks to be the wife in this year's taxes...I fear she will get in trouble for deducting the entire business loss this year...do I tell my client that little known fact?}} | ||
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| + | {{ForumReplyPost|UserID=Rgtaxservice|Date=10 April 2009|Text=Your client would still deduct his share of the losses per the K-1.}} | ||
Revision as of 02:15, 10 April 2009
Discussion Forum Index --> Advanced Tax Questions --> MFS-50/50 shareholder in s-corp
Discussion Forum Index --> Tax Questions --> MFS-50/50 shareholder in s-corp
Sjpaccounting (talk|edits) said: | 9 April 2009 |
| Regardless of basis or anything like that regarding the s-corp--
I have a new client, just contacted me yesterday, about doing his taxes. He and his wife are separated. They have agreed to have the husband deduct 100% of the house and the wife will take 100% of the s-corp losses...even though they are 50/50 shareholders. The husband did not give me a k-1 for 2008, but in his 2007 information there was a K-1...with a significant loss. I guess my question is this-- Can the husband just not take the loss (given that he has basis to take the loss...which I do not know at this point) and the wife take the entire 100% loss, even though she will receive a K-1 for only half of the loss? Seems like it will cause a flag with the IRS, but I can't find anywhere an example of this happening. Thanks for any help you can give me! | |
| 9 April 2009 | |
| I wouldn't worry about her taxes. She is not a client of yours. The only thing you need to know about hers is her SSN and whether she itemizes.
Do the right thing for your client based on what info he gives you. | |
Sjpaccounting (talk|edits) said: | 9 April 2009 |
| I highly doubt she will be able to itemize, since he is taking 100% of the mortgage interest and real estate taxes.
For just my own knowledge, is it possible for a MFS 50/50 shareholder that is husband and wife, just one of them deducting 100% of the loss then? | |
| 9 April 2009 | |
| not until the court orders him to give over all of his shares to her in the divorce settlement. but it was a loss, so I'm sure he will get stuck with the shares and she will get the house. And he will pay the mortgage. Isn't taxes for real people fun! | |
Sjpaccounting (talk|edits) said: | 10 April 2009 |
| That is what I figured...it didn't seem right to me. Sucks to be the wife in this year's taxes...I fear she will get in trouble for deducting the entire business loss this year...do I tell my client that little known fact? | |
Rgtaxservice (talk|edits) said: | 10 April 2009 |
| Your client would still deduct his share of the losses per the K-1. | |
