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