Suppose that at the beginning of 2022 Sharon's basis in her S corporation stock was $42,000...

 

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Suppose that at the beginning of 2022 Sharon's basis in her S corporation stock was $42,000 and Sharon has loaned the S corporation $23,000. During 2022, the S corporation reported a $120,000 ordinary business loss and no separately stated items. After any loss deductions this year, what is Sharon's stock and debt basis at the end of the year if Sharon is a 50 percent shareholder of the S corporation? Kamal Corporation has been an S corporation since its inception. On May 15, 2023, Kamal Corporation distributed $30,000 to Jamal. Jamal's basis in his stock on January 1, 2023, was $35,000. For 2023, Jamal was allocated $35,000 of ordinary income from Kamal Corporation, a long-term capital gain of 15,000, and a charitable contribution of $5,500. What is Jamal's basis in his stock after all transactions in 2023? Suppose that at the beginning of 2022 Sharon's basis in her S corporation stock was $42,000 and Sharon has loaned the S corporation $23,000. During 2022, the S corporation reported a $120,000 ordinary business loss and no separately stated items. After any loss deductions this year, what is Sharon's stock and debt basis at the end of the year if Sharon is a 50 percent shareholder of the S corporation? Kamal Corporation has been an S corporation since its inception. On May 15, 2023, Kamal Corporation distributed $30,000 to Jamal. Jamal's basis in his stock on January 1, 2023, was $35,000. For 2023, Jamal was allocated $35,000 of ordinary income from Kamal Corporation, a long-term capital gain of 15,000, and a charitable contribution of $5,500. What is Jamal's basis in his stock after all transactions in 2023?

Answer rating: 100% (QA)

To calculate Sharons stock and debt basis at the end of the year we need to consider the impact of the S corporations loss and the loan made by Sharon ... View the full answer