Question
What kind of basis creates an S corporation loss deduction?
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Answer
Direct-loan debt basis.
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Question
Why are guarantees of S corporation debt insufficient for basis?
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Answer
A guarantee does not create debt basis.
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Question
Why do partnerships use special allocations?
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Answer
To match tax items with the partners' economics.
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Question
Why time pass-through distributions to available basis?
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Answer
Cash distributions above basis can trigger gain.
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