Which one of the following special loss limitations applies to an S corporation?

Question

Quizplus · Accepted Answer

All of the above apply to S corporations. The at-risk rules limit loss deductions to the amount the taxpayer has at risk in the activity. The passive activity limitation rules restrict the deduction of losses from passive activities to the income generated from those activities. The hobby loss rules prevent the deduction of losses from activities not engaged in for profit against other income. All these limitations can apply to losses passed through to shareholders of an S corporation.

Which One of the Following Special Loss Limitations Applies to an S