S-Corporation Basis Before Year End: Protect Losses and Distributions
Steve PerryPublished on: 22/10/2026
S-Corporation basis is measured December 31. Steve Perry, EA explains how contributions and shareholder loans restore basis to protect losses and avoid taxable distributions.
S-Corporation shareholder basisS-Corp basis year endstock basisdebt basisshareholder loan basiscapital contribution S-Corporationsuspended lossesdistributions in excess of basistaxable S-Corp distributionsForm 7203Schedule K-1 lossesbasis ordering rulesequipment purchase depreciation S-Corporationfirst year depreciationyear end tax planningIRS examination S-Corporationsmall business tax planninghigh net worth tax planningSteve Perry EABooks Taxes & MoreAtlanta tax professional