Technical topics regarding tax preparation.
24-Mar-2023 11:57am
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Hello;
I have a new client single member S Corp and I notice, in the last few years the K1 stock and debt basis has not been historically figured correctly and there have been years with net losses. Eyeballing it I can see the losses would be allowed. Amending multiple years with no change to tax seems not the right course of action or is it? Or can I just fix the basis in the current return? I am not sure best procedure.
26-Mar-2023 9:48am
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26-Mar-2023 10:10am
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26-Mar-2023 12:03pm
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Amending is not required. Correct the stock and debt bases in the current year and move forward.
26-Mar-2023 7:55pm
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Verytaxing wrote:Amending is not required. Correct the stock and debt bases in the current year and move forward.
I agree with just fixing the current stock and loan basis as of the current time if you're sure the prior losses would have been allowed.
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