Section 307.10. Limitation on Pass-thru of Losses to Shareholders.--(a) The aggregate amount of losses taken into account by a shareholder of a Pennsylvania S corporation under section 307.9 shall not exceed the sum of the adjusted basis of the shareholder's stock in the Pennsylvania S corporation, determined after applying section 307.11(a) for the taxable year and the shareholder's adjusted basis of any indebtedness of the Pennsylvania S corporation to the shareholder, determined before applying section 307.11(d) for the taxable year.
(b) There shall be no carryover of losses by the shareholders of the Pennsylvania S corporation.
(307.10 added Dec. 23, 1983, P.L.370, No.90)