How Real Estate rules work
The S-Corp Stock Basis issue is not only a situation of losses, but an issue with the Code Section 179 write-off of up to $500,000 of equipment purchase, If the Corporation borrows $500,000 to purchase assets and then elects to write-off the full amount in order to reduce a $500,000 profit, then the Corporate bank account can be cash rich yet no tax profit in which to declare a dividend. A distribution then translates into a return of capital until exhausted and then a gain on the stock. At this point should the corporation have a loss, the shareholder has no stock basis to declare the loss as described in the article below. The S-Corp can not be managed solely by the bank balance.
We were just told that the house next to our office will be removed in the next two weeks. We realize this may cause a few days of parking congestion (more than normal). We had hoped to have had the house gone before tax season, but the schedule didn't work for the contractor. We apologize for any inconvenience this may cause.