An S election terminates
A) when a shareholder dies.
B) when there is a nonresident alien shareholder
C) when the S corporation invests in a C corporation
D) when an S corporation has excess passive income for two years
Mary purchased 40 percent of an S corporation on February 28 of the current year and sells a 20 percent interest on November 30. If the corporation reports $10,000 of income for the year, what income does it report on Mary's Schedule K-1.
Corbin has a $15,000 basis in his 50 percent ownership in an S corporation and loaned the corporation $5,000 last year. The corporation has $30,000 of other debt. This year the corporation reported a $100,000 loss. How much of this loss may Corbin deduct this year?
Which of the following does not affect the basis of S corporation stock?
A) Tax-exempt income
B) Nondeductible expenses
C) Capital gains
D) All affect stock basis