In an S Corporation which of the following items is not separately stated under Section 1366?

a.Net income from business operations.
b.Long-term capital gain, short-term capital gain, long-term capital loss, short-term capital loss.
c.1231 gains, 1231 losses.
d.All of the above.
e.None of the above .

An S Corporation has four shareholders. The corporation has land with a fair market value of $100,000 and a basis of $20,000. The corporation distributes the land in-kind to the four shareholders. Each shareholders’ basis in the corporation is $1,000. Assume the corporation has always been an S Corporation. Assume also that the AAA balance prior to the property distribution is zero.

a.Each shareholder has a $20,000 gain.
b.Each shareholder has a $20,000 gain and a $4,000 gain.
c.Each shareholder has a $4,000 gain.
d.Each shareholder has no gain or loss until selling the property.
e.None of the above.

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1 d All of the above The S Corporation does not separately state net income from busin... View the full answer