Match the term with the entity to which it applies.
-Losses flow-through limited to basis plus the amount of any direct loans
A)Sole Proprietorship.
B)Partnership.
C)Corporation.
D)S Corporation.

Question

Quizplus · Accepted Answer

This applies to S Corporations, as their losses are passed through to the shareholders and can only be deducted up to the amount of their basis in the stock and any direct loans made to the corporation.

Match the Term with the Entity to Which It Applies