Tammy and Willy own 40% of the stock of Roadrunner, an S corporation. The other 60% is

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Tammy and Willy own 40% of the stock of Roadrunner, an S corporation. The other 60% is owned by 99 other shareholders (all are single and unrelated). Tammy and Willy have agreed to a divorce and are in the process of negotiating a property settlement.

a. Identify the relevant tax issues for Tammy and Willy.

b. The divorce resulted in the Roadrunner stock being distributed equally to Tammy and Willy. Do these developments change the S status of Roadrunner?

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South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

ISBN: 1389

41st Edition

Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

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Question Posted: Sep 09, 2015 07:02 AM

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Tammy and Willy own 40% of the stock of Roadrunner, an S corporation. The other 60% is

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a S corporations can have a maximum of 100 shareholders For this limitation married shareho...View the full answer

South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

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