Ray owns 40% of the stock in Fava Corporation, an S corporation. His basis in the stock

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Ray owns 40% of the stock in Fava Corporation, an S corporation. His basis in the stock is $125,000 prior to the following items. During the year, Ray loans the company $50,000 and the company incurs an ordinary loss of $500,000.

What amount of loss, if any, is carried over by Ray to the following year?

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Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts

ISBN: 9780135919460

34th Edition

Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse

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Posted Date: Mar 26, 2024 12:51 AM

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Ray owns 40% of the stock in Fava Corporation, an S corporation. His basis in the stock

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Share of Loss and Basis Limitations in S Corporations Ray as a 40 shareholder in Fava Corporation an ... View the full answer

Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts

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