Abc Corp functioned as C Corporation for several years before filing a Form 2553 and becoming an
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Abc Corp functioned as C Corporation for several years before filing a Form 2553 and becoming an S Corporation on 1/1/2020. ABC Corp had $25,000 of E&P before it made the S election.
In 2020, ABC Corp has an ordinary business loss of ($30,000).
Daniel is a 50% shareholder in ABC and has a basis of $45,000 at 1/1/2020. ABC distributes $100,000 to Daniel on 12/31/2020.
What are the tax consequences of this distribution?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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