On January 1, 2015, Leo paid $15,000 for 5 percent of the stock in BLS, an S
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On January 1, 2015, Leo paid $15,000 for 5 percent of the stock in BLS, an S corporation. In November, he loaned $8,000 to BLS in return for a promissory note. BLS generated a $600,000 operating loss in 2015.
a. How much of his share of the loss can Leo deduct on his 2015 return?
b. Compute Leo’s basis in his BLS stock and his BLS note at the end of 2015.
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Related Book For
Principles Of Taxation For Business And Investment Planning 2017
ISBN: 9781259753015
20th Edition
Authors: Sally M. Jones, Shelley C. Rhoades Catanach, Sandra R. Callaghan
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