SCORP STOCK

[TAXMAN]

TP a single owner in a S corp has very detailed records on his basis #'s. However TP sold business and assets with a big gain on the K-1. TP basis was 1.5k. after all was said and done TP took all the cash. 1.0k.New owner did not buy the stock. Does TP have a deductible loss? TP never borrowed $ in the s corp  or loaned the corp $, therefore no debt basis. Tp took reasonable salary each year.

So can TP take a Sch d loss to help offset the large capital  gain coming through the K-1? TP basis is very detailed from beginning to end.

[Abby Normal]

Yes, remaining basis as a capital loss for S corps and partnerships.

[TAXMAN]

Thank you. Nice change to find TP who kept all the records to verify #'s.