TAXPAYER WAS 100% OWNER OF S CORP. HE SOLD (STOCK SALE) HIS INTEREST IN 2021. HIS FINAL K-1 SHOWS $18,647 IN ORDINARY INCOME. AT THE TIME OF THE SALE, HE HAD $29,133 IN SUSPENDED LOSSES. HIS STOCK BASIS AS OF THE DATE OF THE SALE WAS $53,932 BECAUSE HE HAD $18,647 IN ORDINARY INCOME AND MADE CAPITAL CONTRIBUTIONS IN 2021.
WOULD IT BE CORRECT THAT HE CAN TAKE ALL THE SUSPENDED LOSSES BECAUSE HE HAD STOCK BASIS IN EXCESS OF THE SUSPENDED LOSSES AND THAT HE WOULD SHOW A NET LOSS OF $10,886 (I.E. $29,533 - 18,647) ON HIS SCH E AND 1040?
THANK YOU.