# Enrolled Agent Exam [Part 2] 26, S Corporation Stock Basis vs Debt Basis

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Text version: https://stenobird.com/podcast/finance-exam-prep-7658413/enrolled-agent-exam-part-2-26-s-corporation-stock-basis-vs-debt-basis.md
Podcast: [Finance Exam Prep](https://stenobird.com/podcast/finance-exam-prep-7658413)
Published: 2026-05-23T22:41:20+00:00
Episode link: https://open-exam-prep.com/
Audio file: https://episodes.captivate.fm/episode/4dcc0fe3-6707-434c-9c9f-278325d4f2ba.mp3
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Duration seconds: 223

## Resource

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

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## Transcript

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