Shareholders May Deduct Losses in Excess of Their Basis in S

question 35

True/False

Shareholders may deduct losses in excess of their basis in S corporation stock when a shareholder holds a loan basis of zero.

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Definitions:

Psychosexual Development

Freud's theory of childhood stages of development, each characterized by an erogenous zone that is the source of a child's psychosexual energy.

Sexual Fantasies

Imaginative thoughts or daydreams about sexual activities or desires, which can serve various psychological purposes.

Unconscious

The part of the mind that contains thoughts, memories, and desires not within the realm of current awareness.

Latency Stage

A phase in Freud's psychosexual developmental theory where the sexual drive is dormant, typically occurring from about age six to puberty.