68. On January 1, 2023, Janna has a tax basis of $15,000 in her Mimikaki stock (Mimikaki has been an S corporation sinceinception). In 2023, Janna was allocated $20,000 of ordinary income from Mimikaki. What are the amount and character of gainshe recognizes from end-of-the-year distributions in each of the following alternative scenarios, and what is her stock basisfollowing each distribution?a) Mimikaki distributes $10,000 to Janna.b) Mimikaki distributes $20,000 to Janna.c) Mimikaki distributes $30,000 to Janna.d) Mimikaki distributes $40,000 to Janna.

We should first make the stock basis adjustments clear. Given that Janna owns a S corporation, the…

Answered: 68. On January 1, 2023, Janna has a tax…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations

Section: Chapter Questions

Problem 2RP

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Similar questions

During 2019, Inez (a single taxpayer) had the following transactions involving capital assets: a. If Inez has taxable income of 158,000, how much income tax results? b. If Inez has taxable income of 35,000, how much income tax results?
B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a cash basis taxpayer. On December 31,2019, the corporation accrues interest of $4,000 on a loan from Bonnie and also accrues a $15,000 bonus to Bonnie. The bonus is paid to Bonnie on February 1,2020; the interest is not paid until 2021 . How much can B Corporation deduct on its 2019 tax return for these two expenses? $0 $4,000 $15,000 $19,000 $12,000
Janna had a tax basis of $19,000 in her Mimikaki stock (Mimikaki has been an S corporation since inception). In 2018, Janna was allocated $24,000 of ordinary income from Mimikaki. What is the amount and character of gain she recognizes from end of the year distributions in each of the following alternative scenarios, and what is her stock basis following each distribution? (Leave no answer blank. Enter zero if applicable.) a. Mimikaki distributes $12,000 to Janna. b. Mimikaki distributes $24,000 to Janna. c. Mimikaki distributes $36,000 to Janna. d. Mimikaki distributes $48,000 to Janna.
Please Provide Explanation And correct answer
Suppose that at the beginning of 2021 Jamaal's basis in his S corporation stock is $1,000 and he has a $10,000 debt basis associated with a $10,000 loan he made to the S corporation. In 2021, Jamaal's share of S corporation income is $4,000, and he received a $7.000 distribution from the S corporation. How much total income does Jamaal report in 2021 from these transactions? Multiple Choice $0 $4,000 $6,000 $7,000 None of the choices are correct.
dividend is 4800?
Sagar
Karen purchased 100 shares of X-Corporation Stock in 2020. X-Corporation is registered and headquartered in Colorado and is listed on the New York Stock Exchange. In 2021, X-Corporation declares and pays a dividend of $4.00 per share. What are the tax consequences for Karen? Group of answer choices a)Karen has received an eligible dividend that will be taxed at a rate of 15-20%. b)Karen has received an eligible dividend that will be excluded from her gross income. c)Karen has received a non-eligible dividend that will be taxed at the ordinary progressive rates. d) Karen has received a non-eligible dividend that will be excluded from gross income.
Angelena files as a head of household. In 2021, she reported $54,900 of taxable income, including a $10,300 qualified dividend. What is her gross tax liability? (Round your answer to the nearest whole dollar amount.) (Use the tax rate schedules, long-term capital gains tax brackets.) Multiple Choice 24 of 31 Next OG $6.318 $5,188 $5,068 $6,571 BRUN < Prev J
Geronimo files his tax return as a head of household for year 2022. If his taxable income is $73,000, what is his average tax rate? (Use tax rate schedule.) Note: Round your final answer to two decimal places. Multiple Choice 13.94 percent 16.20 percent 11.56 percent 22.00 percent None of the choices are correct.
Elmer received the following distributions from Virginiana Mutual Fund for the calendar year 2020: Ordinary dividends $250 Capital gain distributions $170 Nontaxable distributions $80 Elsie, Elmer's wife, did not own any of the Virginiana Mutual Fund shares, but she did receive $1,475 in interest on a savings account at the Mos National Bank and $175 in interest on California Municipal Bonds. Elmer and Elsie filed a joint income tax return for 2020. What amount is repor taxable interest income? Oa. $1,650 Ob. $1.475 Oc. s0 Od. $175 Oe. None of these choices are correct.
In 2022, Carson is claimed as a dependent on his parents' tax return. His parents report taxable income of $200,000 (married filing jointly). Carson's parents provided most of his support. What is Carson's tax liability for the year in each of the following alternative circumstances? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Required: a) Carson is 17 years old at year-end and earned $14,750 from his summer job and part-time job after school. This was his only source of income. Find Tax Liability? b) Carson is 23 years old at year-end. He is a full-time student and earned $14,750 from his summer internship and part-time job. He also received $6,900 of qualified dividend income. Find Tax Liability?

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