1281. CHAPTER 12—S CORPORATIONS Question TF #45 Pass-through S corporation losses can reduce the basis in the shareholder’s loan to the entity but distributions do not. a. True b. False 1282. CHAPTER 12—S CORPORATIONS Question TF #46 An S shareholder’s stock basis is reduced by flow-through losses before accounting for distributions. a. True b. False 1283. CHAPTER 12—S CORPORATIONS Question TF #47 An S shareholder’s stock basis includes a ratable share of any S corporation liabilities. a. True b. False 1284. CHAPTER 12—S CORPORATIONS Question TF #48 Any excess of S corporation losses or deductions over the shareholder’s combined stock and debt basis is suspended until there is a subsequent stock or debt basis. a. True b. False 1285. CHAPTER 12—S CORPORATIONS Question TF #49 An S corporation is entitled to a deduction for its NOL carryovers. a. True b. False 1286. CHAPTER 12—S CORPORATIONS Question TF #50 Any distribution made by an S corporation during a tax year is taken into account before accounting for the year’s losses. a. True b. False 1287. CHAPTER 12—S CORPORATIONS Question TF #51 The carryover period for the NOLs of a C corporation continues to run during S corporation years. a. True b. False 1288. CHAPTER 12—S CORPORATIONS Question TF #52 Any losses that are suspended under the at-risk rules are carried forward and are available during an S corporation’s post-termination period. a. True b. False 1289. CHAPTER 12—S CORPORATIONS Question TF #53 The § 1374 tax is a corporate-level tax on any built-in gain recognized in 2011 when an S corporation disposes of an asset in a taxable disposition within 7 tax years after the date on which the S election took effect. a. True b. False 1290. CHAPTER 12—S CORPORATIONS Question TF #54 The LIFO recapture tax is a variation of the passive investment income penalty tax. a. True b. False
