Question

Donna is a 20% owner in an advertising agency named Bright Ideas ("BI"). BI is a...

Donna is a 20% owner in an advertising agency named Bright Ideas ("BI"). BI is a Subchapter S corporation. The company reported ordinary business income for the year of $150,000. Donna received a K-1 from BI reporting her allocation of this business income. Donna acquired the stock several years ago. Her basis and at-risk amount in the stock before considering her 2018 income allocation was $92,000. Donna is a passive owner with respect to this entity.

What is her passive income or loss?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Hi

Let me know in case you face any issue:

Add a comment
Know the answer?
Add Answer to:
Donna is a 20% owner in an advertising agency named Bright Ideas ("BI"). BI is a...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Diana is a 10% owner in an advertising agency named Bright Ideas (“BI”) (EIN 20-1234567). BI...

    Diana is a 10% owner in an advertising agency named Bright Ideas (“BI”) (EIN 20-1234567). BI is a Subchapter S corporation. The company reported ordinary business income for the year of $150,000. Diana received a K-1 from BI reporting her allocation of this business income. Sarah acquired the stock several years ago. Her basis in the stock before considering her 2017 income allocation was $92,000. Sarah is a passive owner with respect to this entity. How can this be filled...

  • Instructions: Please complete the 2018 federal income tax return for Sarah Hamblin. Be sure to include...

    Instructions: Please complete the 2018 federal income tax return for Sarah Hamblin. Be sure to include only required tax forms when completing the tax return. For purposes of this assignment, unless instructed otherwise, you do not need to attach Form 8582. Also, ignore the requirement to attach the Form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps. Sarah Hamblin and her now ex-husband Kevin were legally...

  • 21. On February 12, 2015, Jon purchased stock in Pik Corporation (the stock is not small...

    21. On February 12, 2015, Jon purchased stock in Pik Corporation (the stock is not small business stock) for $2,000. On May 12, 2016, the stock became worthless. During 2016, John also had an $9,000 loss on § 1244 small business stock purchased two years ago, a $10,000 loss on a nonbusiness bad debt, and a $6,000 long-term capital gain. How should Jon treat these items on his 2016 tax return? a. $4,000 long-term capital loss and $9,000 short-term capital...

  • Please read the article and answer about questions. You and the Law Business and law are...

    Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT