Author Question: Shelley owns a 25% interest in a qualifying S corporation. Shelley's basis in the stock was $15,000 ... (Read 134 times)

Mimi · **on:** Sep 13, 2020

Question 1

Minna is a 50% owner of a calendar year S corporation. During the current year, the S corporation had ordinary income of $400,000, short-term capital gain of $150,000 and a charitable contribution of $30,000. What does Minna report for the year from the S corporation?

Question 2

Shelley owns a 25% interest in a qualifying S corporation. Shelley's basis in the stock was $15,000 at the beginning of the year. Shelley made no capital contributions and received no distributions during the year. Shelley loaned the S corporation $20,000 this year. The S corporation incurred a $160,000 ordinary loss this year.
a. What are the amounts of Shelley's deduction and carryover of the unused loss for the year?
b. What is the amount of Shelley's basis in the stock at the end of year one?
c. If the S Corporation earned net income of $200,000 in year two, what is the amount of Shelley's stock basis at the end of year two?

nital · **Reply #1 on:** Sep 13, 2020

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