A Shareholder's Deduction for Ordinary Losses and Separately Stated Items

question 39

True/False

A shareholder's deduction for ordinary losses and separately stated items cannot exceed his basis for the S corporation stock plus the debt basis for the shareholder loans made to the corporation and corporate-level liabilities personally guaranteed by the shareholder.

---

Definitions:

Clique

A small, exclusive group of individuals with shared interests or common goals, often perceived as isolating themselves from others.

Person-To-Person

Direct interaction or communication between two or more individuals.

Person-To-Person

Direct communication or interaction between individuals, often implying a more intimate or personal connection.

Closed Group

A group with fixed membership, where new members can join only when it opens up for new intake.