Joe owns 10% of a corporation that is treated as a C corporation for tax purposes. His basis in the corporation is $50,000. The corporation has sigificant retained earnings. The corporation distributes $10,000 to Joe.
How much taxable income does Joe report as a result of this distribution?
What is Joes tax basis in the corporation after the distribution?
Joe owns 10% of a corporation that is treated as a C corporation for tax purposes....
Joe owns 10% of a corporation that is treated as a C corporation for tax purposes. His basis in the corporation is $50,000. The corporation has sigificant retained earnings. The corporation distributes $10,000 to Joe. How much taxable income does Joe report as a result of this distribution? What is Joes tax basis in the corporation after the distribution?
joe owns 10% of an LLC that is treated as a partnersihp for tax purposes. His basis in the LLC is $50,000. The LLC has sigificant undistributed earnings. The LLC distributes $10,000 to Joe. How much taxable income does Joe report as a result of this distribution? What is Joes tax basis in the LLC after the distribution?
At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $32,000. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $50,000 to its sole shareholder, Abby, whose stock basis is $10,000. How is the distribution treated for tax purposes? If an amount is zero, enter "0". As a result the distribution Abby has the following: Dividend income: ? Return of capital: ? Capital gain: ?...
In Year 1, Reese Corporation (a C-Corporation) reported a loss for tax purposes of $50,000. How much tax will Reese Corporation pay in year 2 if it reports taxable income from operations of $30,000 under the following assumptions? a.Year 1 is 2017 b.Year 1 is 2018
Elm Corporation has 100 shares of stock outstanding of which Oak Corporation owns 75 shares with a basis of $10,000, and Sherman Forest owns 25 shares with a basis of $30,000. Elm Corporation has a $50,000 net operating loss carryover and the following assets (all held long-term): Basis Fair Market Value Cash $20,000 $20,000 Installment Note $10,000 $40,000 Land $1,000 $10,000 Equipment (all Sec. 1245 recapture) $5,000 $10,000 $36,000 $80,000 What are the tax consequences if Elm Corporation adopts...
3. Southern Corp., an S corporation, has no corporate E&P from years as a C corp. At the end of the year, it distributes a baseball court to its 50% shareholder, Jack, in an operating distribution. The fair market value of the court is $80,000, and its tax basis is $50,000. Mr. Jack's basis in his stock is $15,000. A. How much gain (loss) does Mr. Jack recognize as a result of the distribution (there may be more than one...
The Beta Corporation owns a building with a basis of $20,000 that is subject to a debt of $80,000. The FMV of the building is $50,000. Beta distributes the property in a nonliquidating distribution (along with the debt) to Ben, its sole shareholder. What is Ben’s basis in the building received from Beta in the distribution? a. $80,000. b. $50,000. c. zero d. $30,000. e. none of the above. The Beta Corporation owns a building with a basis of $20,000...
Exercise 19-21 (Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $53,400. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $80,100 to its sole shareholder, Abby, whose stock basis is $16,020. How is the distribution treated for tax purposes? If an amount is zero, enter "O" As a result the distribution Abby has the following: Dividend income: $ Return of...
. 1. Identify which of the following statements is true: C Corporation operating losses are deductible by the individual shareholders S Corporation operating losses are never deductible by the individual shareholders. If an S Corporation has no accumulated earnings and profits, the amount distributed to a shareholder will not increase the shareholder's basis in the stock If a C Corporation does not distribute its income to its shareholders, double taxation of the income will occur. 2. The adjusted basis of...
1. Corporation P files a consolidated return with Corporation S. In preparing a consolidated return, their accountant finds the following: P S Separate taxable income (loss) $500,000 ($200,000) Capital gain (loss) ($25,000) $50,000 Charitable contributions $20,000 $10,000 Dividend from S $10,000 What is the consolidated return taxable income? a. $365,000 b. $295,000 c. $280,000 d. $315,000 2. Jude received a $25,000 distribution from BC Corporation that the corporation identified as $15,000 dividend and $10,000 return of capital. What effect does...