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As long as you have sufficient tax basis (remaining investment of capital and/or loans) yes, you would be able to deduct the loss on page 2 of Schedule E.
I thought so because in the past with my other company that I just closed, I was able to deduct my business losses from my personal taxes. When I went to pick up my taxes the secretary said the accountant is out of town on vacation and he didn't provide a K1 or anything to deduct the 1120S corp losses. I thought oh crap I lost 10K I thought I would get a refund, not owe taxes.
What taxes did you pick up? The 1120S?
I had them complete my 1120S (filed extensions for both) and my persona
The secretary said there are no deductions from a business loss for an 1120S and told me to essentially get lost
I was a little upset
Is this accountant a CPA?
So, did you pick up your 1120S & your personal return?
Yes the accountant is a CPA and I left the taxes there and asked to speak with the accountant. They told me to come back on Aug 6th when he is done vacationing
I said I will not pay until these are done properly
their response was to send me the bills by mail instead
I am not pleased that's for sure
So you don't have the taxes with you now?
I do not, they remain at their office, and will not be returned to me unless I pay
but they are not done properly as far as I know from experience
Don't assume the taxes are done incorrectly. Wait until you speak with the CPA.
understood and good advice, but I am a little surprised
The K-1 from the 1120S is not filed with your personal return, so the 1120S loss may be on page 2 of the Schedule E of the form 1040.
I prefer to speak with CPAs and not secretaries as I am a serious professional. Anyway, thank you for your help and I will keep in mind to ask where it is and how it is being counted
If he/she is a CPA & is doing both returns, it would be very unusual for this particular error to be made. It is a pretty basic thing. Now there very well may be a reason why the loss can't be deducted & if that were to be the case, the CPA should be able to explain it to you.
agreed, I hope he does/will.
It is only 5 days until he returns; so don't be too concerned until he gets back; if its wrong (we all make mistakes) he should fix it.
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I'm betting it is correct, one way or another.
Stephen, I am providing you with an excellent service rating, thank you again for your time.