During 2020, Michael owns 80% of Chili Burger's, Inc., a calendar year S corporation. His son,...

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During 2020, Michael owns 80% of Chili Burger's, Inc., a calendar year S corporation. His son, Sonny owns the remaining 20% of the stock. At December 31, 2019, Michael's stock basis is $32,000, and his debt basis is $5,000. During 2020, Chili Burgers makes a $6,400 cash distribution to Michael and a $1,600 cash distribution to Sonny. a. If Chili Burger's incurs a $60,000 loss for 2020. what amount of the loss can Michael deduct on his individual tax return? b. What is Michael's stock basis and debt basis at December 31, 2020? C. Are any of Michael's losses suspended under the basis rules? If yes, how much of Michael's losses are suspended? During 2020, Michael owns 80% of Chili Burger's, Inc., a calendar year S corporation. His son, Sonny owns the remaining 20% of the stock. At December 31, 2019, Michael's stock basis is $32,000, and his debt basis is $5,000. During 2020, Chili Burgers makes a $6,400 cash distribution to Michael and a $1,600 cash distribution to Sonny. a. If Chili Burger's incurs a $60,000 loss for 2020. what amount of the loss can Michael deduct on his individual tax return? b. What is Michael's stock basis and debt basis at December 31, 2020? C. Are any of Michael's losses suspended under the basis rules? If yes, how much of Michael's losses are suspended? During 2020, Michael owns 80% of Chili Burger's, Inc., a calendar year S corporation. His son, Sonny owns the remaining 20% of the stock. At December 31, 2019, Michael's stock basis is $32,000, and his debt basis is $5,000. During 2020, Chili Burgers makes a $6,400 cash distribution to Michael and a $1,600 cash distribution to Sonny. a. If Chili Burger's incurs a $60,000 loss for 2020. what amount of the loss can Michael deduct on his individual tax return? b. What is Michael's stock basis and debt basis at December 31, 2020? C. Are any of Michael's losses suspended under the basis rules? If yes, how much of Michael's losses are suspended? During 2020, Michael owns 80% of Chili Burger's, Inc., a calendar year S corporation. His son, Sonny owns the remaining 20% of the stock. At December 31, 2019, Michael's stock basis is $32,000, and his debt basis is $5,000. During 2020, Chili Burgers makes a $6,400 cash distribution to Michael and a $1,600 cash distribution to Sonny. a. If Chili Burger's incurs a $60,000 loss for 2020. what amount of the loss can Michael deduct on his individual tax return? b. What is Michael's stock basis and debt basis at December 31, 2020? C. Are any of Michael's losses suspended under the basis rules? If yes, how much of Michael's losses are suspended?