For an S corporation shareholder to deduct it, a loss must clear three separate tax-provision hurdles: (1) tax basis, (2) at-risk amount, and (3) tax-shelter rules.
The hurdles are: tax basis, at-risk amount, and passive activity.

Question

Quizplus · Accepted Answer

The three hurdles for an S corporation shareholder to deduct a loss are tax basis, at-risk amount, and passive activity loss limitations, not tax-shelter rules.

For an S Corporation Shareholder to Deduct It, a Loss