Question: Orange Inc a calendar year corporation in Clemson South Carolina

Orange, Inc., a calendar year corporation in Clemson, South Carolina, elects S corporation status for 2014. The company generated a $74,000 NOL in 2013 and another NOL of $43,000 in 2014.
At all times in 2013 and 2014, the stock of the corporation is owned by the same four shareholders, each owning 25% of the stock. Pete, one of the shareholders, holds a $6,020 basis in this Orange stock at the beginning of 2014. Identify the Federal income tax issues that Pete faces.

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  • CreatedMay 25, 2015
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