Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 7307.10. 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  1 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)  2 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.