Question: Katie is a one third owner of an S corporation After

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?

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  • CreatedOctober 30, 2015
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