mshen11 said:http://www.google.com/hostednews/ap/article/ALeqM5hJJraNRE6DjWj2...

"The business tax break would allow money-losing companies to use current losses to offset taxable profits earned in the previous five years, giving them refunds of taxes paid in those years. Under current law, businesses with annual gross receipts of more than $15 million can claim losses back only two years."

does anyone know the details? specifically how it affects s-corps?If you have a smaller s-corp and it qualified for the eligible small business loss in 2008, you already could have elected a 5 year carryback on your 2008 tax return.

If you would have benefited from a 3, 4, or 5 year carryback of your losses in 2008 and your CPA did not make an election, now would be the time to find a more qualified CPA.

oopsz said:Doesn't each year with a claimed loss in an S-corp reduce its basis?Yes. This provision is about the deduction for net operating losses, which doesn't apply to S corporations; they aren't taxpayers (under the regular income tax) and don't have attributes like loss carrybacks.

If an individual owns stock of an S corporation, and the individual has a net loss for the year (i.e., total income less than zero, counting only business deductions and certain other deductions like casualty losses, except against non-business income), then the individual can carry the net loss back or forward, and the right to carry back is expanded by this provision.