A calendar year C corporation has a $33,000 NOL in 2007,but elects S status for 2008 and generates an NOL of $30,000 in 2008. At all times during 2008,the stock of the corporation was owned by the same 10 shareholders,each of whom owned 10% of the stock. Kris,one of the 10 shareholders,has an adjusted stock basis of $2,200 at the beginning of 2008. What amount of the loss,if any,is deductible by Kris in 2008?

Question

Quizplus · Accepted Answer

The 2007 NOL of $33,000 does not carry forward into the S corporation years. Although Kris's share of the 2008 NOL is $3,000,only $2,200 of the loss is deductible by Kris in 2008,with an $800 carryover.

A Calendar Year C Corporation Has a $33,000 NOL in 2007,but