A shareholder purchases 30 percent of the stock of an S corporation two thirds of the way through the year for $20,000 The S corporation incurs an operating loss of $300,000 for the year What is the amount that the shareholder may deduct on his personal income tax return, assuming the at risk and p...

The shareholder will receive a K1 that reports their lo ...

A shareholder purchases 30 percent of the stock of an S corporation two-thirds of the way through

Question:

A shareholder purchases 30 percent of the stock of an S two-thirds of the way through the year for $20,000. The S incurs an operating loss of $300,000 for the year. What is the amount that the shareholder may deduct on his personal income tax return, assuming the at-risk and passive activity rules do not apply? 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...