A calendar year C corporation reports a $41,000 NOL in 2014, but it elects S status for
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A calendar year C corporation reports a $41,000 NOL in 2014, but it elects S status for 2015 and generates an NOL of $30,000 in that year. At all times during 2015, the stock of the corporaton was owned by the same 10 shareholders, each of whom owned 10% of the stock. Kay, one of the 10 shareholders, holds an S stock basis of $2,300 at the beginning of 2015.
Explain the tax effect of the 2015 loss on Kay?
Related Book For
South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities
ISBN: 9780357109144
20th Edition
Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
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