Our financial adviser asked me if we can take some investment losses from our corporate investment account (stocks and bonds) and apply these losses to offset investment gains from our individual investment account?
The gain/loss from your corporate investments is not counted towards your S-corp’s operating income. Instead, the income passes through to the owners of the S-corporation (this is why, for tax purposes, an S-corp is considered a pass-through entity).
These gains/losses should be reported on the owner’s schedule K-1 and also Schedule K of Form 1065 . Note that as with ordinary capital loss reporting, there’s a $3000 cap on losses you can use to offset gains in a calendar year.
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