Finance Exam Prep
Ran Chen, EA, CFP®
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Enrolled Agent Exam [Part 2] 26, S Corporation Stock Basis vs Debt Basis
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The precise ordering for deducting S corp losses: first against stock basis to zero, then against debt basis. - Why a shareholder loan guarantee does NOT create debt basis, while a direct loan does. - The reverse ordering for basis restoration: net income restores debt basis first, then stock basis. - How to calculate deductible and suspended losses using a concrete, multi-year example. - A mnemonic to remember the ordering rules: SDL-RDS (Stock-Debt for Losses, Restoration-Debt-Stock). For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
![Enrolled Agent Exam [Part 2] 30, S Corp Reasonable Compensation Requirement](https://is1-ssl.mzstatic.com/image/thumb/Podcasts211/v4/61/8c/65/618c6502-3a7a-880a-56d8-b1e0e4f0c342/mza_18293400859732431322.png/160x160bb.jpg)
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