On January 1, 2016, Leo paid $15,000 for 5 percent of the stock in BLS, an S

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On January 1, 2016, Leo paid $15,000 for 5 percent of the stock in BLS, an S corporation. In November, he loaned $8,000 to BLS in return for a promissory note. BLS generated a $600,000 operating loss in 2016.

a. How much of his share of the loss can Leo deduct on his 2016 return?

b. Compute Leo's basis in his BLS stock and his BLS note at the end of 2016?

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Principles Of Taxation For Business And Investment Planning 2018

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Question Posted: Oct 31, 2017 01:58 AM

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On January 1, 2016, Leo paid $15,000 for 5 percent of the stock in BLS, an S

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a Leo can deduct 23000 of his 30000 allocated share of BLSs 2016 operating los...View the full answer

Principles Of Taxation For Business And Investment Planning 2018

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