QUESTION 25 Betty Corporation, a calendar year S Corporation, has an Operating Loss of $80,000 and a Long-Term Capital Loss of $20.000 for the year of 2021. Nanette, an individual owns forty percent (40N) of the stock of Betty Corporation and has a $20,000 basis in her stock at the beginning of the year of 2021. What amount of the Long-Term Capital Loss can Nanette deduct on her personal Federal Iincome Tax Return (Form 1040) for the year of 2021? $20.000 O $16,000 O$ 8.000. O$ 4,000

QUESTION 25 Betty Corporation, a calendar year S Corporation, has an Operating Loss of $80,000 and a Long-Term Capital Loss of $20.000 for the year of 2021. Nanette, an individual owns forty percent (40N) of the stock of Betty Corporation and has a $20,000 basis in her stock at the beginning of the year of 2021. What amount of the Long-Term Capital Loss can Nanette deduct on her personal Federal Iincome Tax Return (Form 1040) for the year of 2021? $20.000 O $16,000 O$ 8.000. O$ 4,000

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter22: S Corporations

Section: Chapter Questions

Problem 46P

See similar textbooks

Similar questions

Jayne purchased General Motors stock 6 years ago for $20,000. In the current year, she sells the stock for $35,000. What is Jayne's gain or loss? $15,000 long-term gain $15,000 short-term gain $15,000 ordinary loss $15,000 extraordinary gain No gain or loss is recognized on this transaction.
Becker CPA Review 19-6 Jane is the sole shareholder of Buttons, Inc. Buttons has accumulated earnings and profits (E & P) of $65,000 at the beginning of the current year. The current E & P is $35,000. Buttons pays out a property distribution to Jane during the current year with an FMV of $150,000 and an adjusted basis of $130,000. How much is a taxable dividend to Jane? a.$35,000 b.$100,000 c.$120,000 d.$150,000
Question 9 Tami Turner purchased 8,000 shares of TTH Ltd. on January 31, 2021, for $50,000. Her husband, Tom, disposed of l0,000 shares of TTH Ltd. on February 15, 2021, for $70,000. Tom originally purchased the 10,000 shares for $120,000 on March 31, 2019. Calculate / Discuss the tax implications of the above for both Tami and Tom.
QUESTION 15 During the year, an S corporation incurs a $80,000 net operating loss. Corrine, the sole shareholder, has a $65,000 stock basis, and there is a $75,000 balance in AAA at the beginning of the year. Which statement is correct? O At the end of the year, there is a zero basis in both Corrine's stock basis and the AA O Corrine may deduct $75,000 of the loss O Corrine may show a $80,000 loss deduction on her Form 1040 O At the end of the year, Corrine has a zero basis in the stock, and there is a negative $5,000 balance in the AAA
12 it revenue to be said in on and the taxpaye laxavie IUI, and in the event is cau. Nadine bought 100 shares of PIE stock for $15 a share on March 14, 2020. On August 1, 2021, she noticed that the stock had increased in value to $25 a share. She decided to sell all of her shares. Nadine's only other income for the year consisted of $68,000 in wages. She will use the single filing status. Nadine's revenue from the sale of stock will increase her taxable income by: $1,000, and this $1,000 will be taxed at a capital gain rate of 15%. O$1,000, and this $1,000 will be taxed at her regular marginal tax rate of 22%. $2,500, and this $2,500 will be taxed at a capital gain rate of 20%. $2,500, and this $2,500 will be taxed at her regular marginal rate of 22%. Mark for follow up
ces Mrs. Beard recognized a $12,400 capital loss on the sale of corporate stock this year. Required: a. How much loss can she deduct if she had no other capital transactions this year? b. How much loss can she deduct if she recognized a $3,890 capital gain on the sale of an antique rug and had no other capital transaction this year? c. How much loss can she deduct if she recognized a $15,720 capital gain on the sale of investment land and had no other capital transaction this year? Complete this question by entering your answers in the tabs below. Required A Required B Required C How much loss can she deduct if she had no other capital transactions this year? Deductible Loss
Becker CPA Review 19-5 Jane is the sole shareholder of Buttons, Inc. Buttons has a deficit of $60,000 in accumulated earnings and profits (E & P) at the beginning of the current year. Current E & P is $35,000. If Buttons pays out a cash distribution to Jane during the current year of $50,000, how much is a taxable dividend to Jane? a.$0 b.$35,000 c.$50,000 d.$85,000
Exercise 6-25 (LO. 1) During the current year, Gnatcatcher, Inc., (E & P of $1,000,000) distributed $200,000 each to Brandi and Yuen in redemption of some of their Gnatcatcher stock. The two shareholders acquired their shares five years ago. Each shareholder is in the 32% tax bracket, and each had a $45,000 basis in the redeemed stock. Assume taxpayers in the 32% tax bracket are subject to the long-term capital gains and qualified dividends tax rate of 15%. a. Assume that the distribution to Brandi is a qualifying stock redemption. The distribution is taxed as a and Brandi's tax liability on the distribution is $ b. Assume that the distribution to Yuen is a nonqualified stock redemption. The distribution is taxed as a and Yuen's tax liability on the distribution is $
LO.1 Virginia owns 100% of Goshawk Company. In the current year, Goshawk Company sells a capital asset (held for three years) at a loss of $40,000. In addition, Goshawk has a short-term capital gain of $18,000 and net operating income of $90,000 during the year. Virginia has no recognized capital gain (or loss) before considering her ownership in Goshawk. How much of the capital loss may be deducted for the year, and how much is carried back or forward if Goshawk is: A proprietorship? A C corporation?
Problem 12-63 (LO 12-5) Lewis owns 200 shares of stock in Modlin Corporation. His adjusted basis for the stock is $188,250. On December 15, 2022, he sells the stock for $175,500. He purchases 200 shares of Modlin Corporation stock on January 8, 2023, for $175,500. Required: a. What are Lewis's realized and recognized gain or loss on the sale? b. What is Lewis's adjusted basis for the 200 shares purchased on January 8, 2023? c. How would your answers in parts (a) and (b) change if he purchased only 100 shares for $109,400 in January? Note: For all requirements, if no gain or loss is recognized, select "No gain or loss". a. a. b. Adjusted basis of shares C C. C. Adjusted basis of shares Amount 6 A
Problem 4. Mr. X is an investor in ABC Corporation. In 2020, he has 1,000 share holdings acquired at P120 per share classified as capital asset. Mr. X uses FIFO in costing his investment holdings. b. How much is the nondeductible loss in May? c. Supposing that all the remaining shares were liquidated in December 2021 at 130 per share, what would be the capital gain(loss) to be recognized.
Problem 4. Mr. X is an investor in ABC Corporation. In 2020, he has 1,000 shareholdings acquired at P120 per share classified as a capital asset. Mr. X uses FIFO in costing his investment holdings b. How much is the nondeductible loss in May? c. Supposing that all the remaining shares were liquidated in December 2021 at 130 per share, what would be the capital gain(loss) to be recognized.