Katie is a one-third owner of an S corporation. After a falling out with the other shareholders,

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Katie is a one-third owner of an S corporation. After a falling out with the other shareholders, Katie signed an agreement early in January 2014. Under the terms of the agreement, Katie took $ 200,000 of her capital from the corporation and had eight months to negotiate a purchase of the stock of the other shareholders. She did not complete this task by the end of August 2014. On March 1, 2015, Katie sells all her shares to the remaining shareholders for a $ 2.5 million gain. For how many of these months does Katie report flow-through income from the S corporation?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Federal Tax Research

ISBN: 9781285439396

10th Edition

Authors: Roby Sawyers, William Raabe, Gerald Whittenburg, Steven Gill

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