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Discussion Forum Index --> Tax Questions --> Personal bankruptcy and S corp loss carryforward
Wattacpa (talk|edits) said:
| 19 June 2007
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| Client has an S corp that currently has $88K in loss carryforward to 2007 due to at risk limitations- has now filed personal bankruptcy - what effect if any will the bankruptcy have on the loss carryforward-
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Kevinh5 (talk|edits) said:
| 19 June 2007
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| S corp doesn't have carryforward, it is carried forward at shareholder level. Have to do that form for Tax Attributes
Form 982
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Riley2 (talk|edits) said:
| 19 June 2007
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| Wattacpa, any loss carried forward to the year after bankruptcy as a result of basis limitations must be reduced by the amount of excluded COD income.
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Wattacpa (talk|edits) said:
| 2 July 2007
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| Thanks and Kevin- I meant the loss carryforward was at the shareholder level. They have filed Ch 7 and should have it completed by October.
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Riley2 (talk|edits) said:
| 2 July 2007
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| Wattcpa, my original advice stands. The Sec. 1366(d) loss carryforward at the shareholder level is first used to reduce the tax for the year of the discharge, any remaining loss is reduced by any cancellation of debt income caused by the discharge.
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