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Does an S-Corp business investment loss pass through to the owners?

Home Forums Financial Security Does an S-Corp business investment loss pass through to the owners?

This topic contains 1 reply, has 2 voices, and was last updated by  David DeMille 5 years, 10 months ago.

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  • #8941 Reply

    Justin Doomach
    Participant

    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?

  • #8943 Reply

    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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