Schedule D question...

[Ryan Ridnour]

I was 20% owner of a Subchapter S corp. We ceased operations
in 2001, liquidating our assets. The company's final tax
return was for tax year 2001. After it was all said and
done, my partners stuck me with a loss, which was about
$10,000. I paid the debt with a home equity loan taken out
in 2002.

After consulting with an accountant, he said I can use the
$3000 yearly max capital loss every year until I have used
up all of the loss. He also said that goes on Schedule D.

Exactly how do I put that on Schedule D? I didn't really
purchase and sell anything as an individual. Do I need any
other IRS Forms with that, or does it just go on Schedule D?
The final corporate tax return didn't show the loss, so
having it flow through to my personal return by way of K-1
will not work. I just need to know how specifically to word
it on the Schedule D.

Thanks,

Ryan

 

[BRaskinCPA]

I was 20% owner of a Subchapter S corp. We ceased operations

in 2001, liquidating our assets. The company's final tax
return was for tax year 2001. After it was all said and
done, my partners stuck me with a loss, which was about
$10,000. I paid the debt with a home equity loan taken out
in 2002.

After consulting with an accountant, he said I can use the
$3000 yearly max capital loss every year until I have used
up all of the loss. He also said that goes on Schedule D.

Exactly how do I put that on Schedule D? I didn't really
purchase and sell anything as an individual. Do I need any
other IRS Forms with that, or does it just go on Schedule D?
The final corporate tax return didn't show the loss, so
having it flow through to my personal return by way of K-1
will not work. I just need to know how specifically to word
it on the Schedule D.

Why don't you have the CPA that you consulted prepare your
tax return? That would insure that you get the most bang for
your buck.

Don't be penny wise and pound foolish.

Bruce Raskin, CPA
Small Business and Individual Tax and Accounting Services

 

[D.F.]

I was 20% owner of a Subchapter S corp. We ceased operations
in 2001, liquidating our assets. The company's final tax
return was for tax year 2001. After it was all said and
done, my partners stuck me with a loss, which was about
$10,000. I paid the debt with a home equity loan taken out
in 2002.

I am no pro, but I think the loss would go on your personal
2001 schedule D. Probably some other forms too. If you had
an unreported loss for 2001, you would file a corrected tax
return for 2002, 2002 and then for 2003. Use it, or lose it.

After consulting with an accountant, he said I can use the
$3000 yearly max capital loss every year until I have used
up all of the loss. He also said that goes on Schedule D.

Exactly how do I put that on Schedule D?

The carryover left from your 2002 tax goes on lines 6 and 14
of your 2003 schedule D as negative numbers.

I didn't really
purchase and sell anything as an individual. Do I need any
other IRS Forms with that, or does it just go on Schedule D?
The final corporate tax return didn't show the loss, so
having it flow through to my personal return by way of K-1
will not work. I just need to know how specifically to word
it on the Schedule D.

I have nothing to offer on this section. But seeing a tax
pro is going to be good for you most probably.