Greiner, Inc., a calendar year S corporation, holds no AEP. During the year, Chad, an individual Greiner shareholder, receives a cash distribution of $30,000 from the entity. Chad’s basis in his stock is $25,000. Compute Chad’s ordinary income and capital gain from the distribution. What is his stock basis after accounting for the payment?
Answer to relevant QuestionsHolbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31. Cody’s basis in his stock is $20,000, Holbrook’s AAA balance is $8,000, and Holbrook holds $2,500 AEP ...On January 1, 2015, Kinney, Inc., an S corporation, reports $4,000 of accumulated E&P and a balance of $10,000 in AAA. Kinney has two shareholders, Erin and Frank, each of whom owns 500 shares of Kinney’s stock. Kinney’s ...In Problem 44, how much of the Whitman loss belongs to Ann and Becky? Becky’s stock basis is $41,300. In problem At the beginning of the year, Ann and Becky own equally all of the stock of Whitman, Inc., an S corporation. ...The tax treatment of fringe benefits for more-than-2% shareholder-employees of S corporations is less favorable than that for nonowners or employees of some other entities. What fringe benefits are subject to this ...Arnold is going to conduct his business in corporate form. What factors should he consider in deciding whether to operate as a C corporation or as an S corporation?
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