Deductibility of S Corporation Losses and Deductio

"Deductibility of S Corporation Losses and Deductions" Please respond to the following:
•	Per the text and IRC, losses and deductions of an S corporation pass through to the shareholders of the corporation and are limited to the shareholders’ basis in the S corporation. Suggest a plan for a client to increase the deductible pass through loss and deductions over the initial investment from a new wholly owned S corporation.
•	Analyze the major advantages and disadvantages of using the plan you created on tax planning in the first part of this discussion for future years.

Week 7 E-activity
Go to the Tax Almanac Website, located here, or use the Internet and Strayer databases to research S corporation distributions and taxation. Be prepared to discuss.

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