Elect to have the shareholder basis reduced by deductible items and then non-deductible items
Under IRC Regulation 1.1367-1(g), the shareholder may elect to reduce basis by items of loss or deduction before reducing basis by nondeductible, noncapital expenses and certain oil and gas depletion deductions.
Do the following to make this election:
- SelectViewthenShareholder Information.
- Select theOther Infotab then theShareholder Basiswindow.
- Go to theSuspended Lossestab and enterXin theRegulation 1.1367-1(G) electionfield.The election statement will automatically print in the respective shareholder package.noteThe election statement is only required in the 1st year the election is made. If you don't need the election statement to print in the current year, enterXin theSuppress 1367 election statementfield.
