Any losses that are suspended under the at-risk rules are carried forward and are available during an S corporation's post-termination period.

Question

Quizplus · Accepted Answer

Any losses that are suspended under the at-risk rules are carried forward and remain available to the S corporation during its post-termination period. This is because the at-risk rules apply at the shareholder level, and the suspended losses are associated with the shareholders' basis in the S corporation's stock. Therefore, even after the S corporation terminates, the shareholders can use the suspended losses to offset future taxable income from any source.

Any Losses That Are Suspended Under the At-Risk Rules Are