Discussion:S-Corp Question - PLEASE HELP!!!
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Revision as of 12:14, 24 June 2006 Scot1 (Talk | contribs) (If the partnersh) Next diff → |
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| Is there anything I need to do with this on the 1120S or how do I handle? I have never run into this before so if there is anyone out there who can help me out, I GREATLY appreciate it!!!!!!}} | Is there anything I need to do with this on the 1120S or how do I handle? I have never run into this before so if there is anyone out there who can help me out, I GREATLY appreciate it!!!!!!}} | ||
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| + | {{ForumReplyPost|UserID=Scot1|Date=24 June 2006|Text=If the partnership capital account has been reported on the "tax basis", a negative capital account generally suggests that the S Corp has been passed through losses and/or draws in excess of its tax basis. If that is the case, the negative capital account upon termination would be considered income to the S Corp. If the S Corp has suspended losses from the partnership, they will be trigger upon liquidation and deductible. }} | ||
Revision as of 12:14, 24 June 2006
Discussion Forum Index --> Tax Questions --> S-Corp Question - PLEASE HELP!!!
Stephanie1 (talk|edits) said: | 24 June 2006 |
| An S-Corp is a partner in a limited partnership. They received a K-1 from the partnership with a letter stating that this is the final year that the partnership will be filing an income tax return, hence this is the last K-1 that the S-Corp will receive.
Looking at the K-1, the S-Corp has a negative $35,000 ending capital account balance in the partnership. Is there anything I need to do with this on the 1120S or how do I handle? I have never run into this before so if there is anyone out there who can help me out, I GREATLY appreciate it!!!!!! | |
| 24 June 2006 | |
| If the partnership capital account has been reported on the "tax basis", a negative capital account generally suggests that the S Corp has been passed through losses and/or draws in excess of its tax basis. If that is the case, the negative capital account upon termination would be considered income to the S Corp. If the S Corp has suspended losses from the partnership, they will be trigger upon liquidation and deductible. | |
