I have a $6k loss for my s-corp from 2012 (I'm under extension and haven't filed anything yet).
My accountant told me that I cannot take the $6k as a loss on line 17 of my 1040. I can; however, use this loss to offset future profits in the company but the loss doesn't flow through to my 1040 and I can't take advantage of that on my personal return.
Over the past 15 years, I've added the income to box 17 of my personal return and now this is my first year with a loss. Why can't I show a negative figure in box 17?
What am I missing?
Thu Jun 27, 2013 6:10 pm
coaster Senior Advisor
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I'm not a tax guy and not familiar with reporting S Corp income, but I think a general principal is probably behind what your tax guy told you and that has to do with losses from income-producing activities can usually only offset income from like income producing activities. If S Corp income is not considered "ordinary income", a loss that flowed through to you from your S Corp venture cannot offset other ordinary income.
You can carry that loss forward and offset your income next year; and here's something to look into: you might even be able to carry it back. Some losses are elegible for carry-backs where you file ammended returns for previous years, applying the losses toward income in those years. I don't know if it applies to you though; best talk to your tax guy.
moved to tax forum
~Tim~
Fri Jun 28, 2013 3:03 am
clydewolf Senior Member
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Re: Flow thru 'loss' from an s-corp
quote:Originally posted by camster39 I have a $6k loss for my s-corp from 2012 (I'm under extension and haven't filed anything yet).
My accountant told me that I cannot take the $6k as a loss on line 17 of my 1040. I can; however, use this loss to offset future profits in the company but the loss doesn't flow through to my 1040 and I can't take advantage of that on my personal return.
Over the past 15 years, I've added the income to box 17 of my personal return and now this is my first year with a loss. Why can't I show a negative figure in box 17?
What am I missing?
Situations such as yours become complex and people posting on this and other forums do not have enough information to provide the exact answer. That is why you have an accountant.
You should ask your accountant. He has a much better understanding of your S Corp, and your role in the S Corp.
