Terry is a sole shareholder in the S$-$Corp, Member Corporation. At the beginning of last year, her basis in her Member stock was $$300,000.$  Member also had debt of $$70,000$ it owed to unrelated parties.

During last year she loaned Member $$75,000.$  Member generated a loss of $$350,000$ last year. She is active in the S$-$Corp.

What was her basis in the stock and the loan at the end of last year?

How much of the loss from last year can she deduct on her Individual Tax Return?

Assume the facts above. Suppose that in the current year the income of Member is $$175,000.$  What would be Terry$’$s basis in the stock and the loan at the end of the current year?

Answer rating: 100% (QA)

End of Last Year 1 Basis in Stock and Loan Terrys basis in the stock at the end of last year would b... View the full answer