| What happens if you have losses in excess of your basis? Are these deductible?
Dear Taxguru,
I have an S corporation and it appears that there were substantial losses I incurred in 2006 which exceed my basis. The corporation got a line of credit from the bank and that is how I was able to sustain these losses.
If the losses are not deductible what happens to them? I am expecting the business to get much better in 2007! | 
