Monie, an individual taxpayer, owns 50% of Monie & Co, an S Corporation. At the beginning of 20X4, Monie's basis in Monie & Co stock was $55,000. During 20X4, Monie & Co realized an ordinary loss in the amount of $45,000 and a short-term capital loss of $15,000. Monie & Co made total distributions of $70,000 to its shareholders during this taxable year. What amount of the $70,000 distribution is taxable to Monie?
Monie, an individual taxpayer, owns 50% of Monie & Co, an S Corporation. At the beginning of 20X4, Monie's basis in Monie & Co stock was $55,000. During 20X4, Monie & Co realized an ordinary loss in the amount of $45,000 and a short-term capital loss of $15,000. Monie & Co made total distributions of $70,000 to its shareholders during this taxable year. What amount of the $70,000 distribution is taxable to Monie?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter6: Losses And Loss Limitations
Section: Chapter Questions
Problem 25P
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Transcribed Image Text:Monie, an individual taxpayer, owns 50% of Monie & Co, an S
Corporation. At the beginning of 20X4, Monie's basis in Monie & Co
stock was $55,000. During 20X4, Monie & Co realized an ordinary loss in
the amount of $45,000 and a short-term capital loss of $15,000. Monie
& Co made total distributions of $70,000 to its shareholders during this
taxable year.
What amount of the $70,000 distribution is taxable to Monie?
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