S Corporation generates a net loss of $100,000 in the current year. Cora is a 50% owner of S Corporation. Assume the S Corporation is not a passive activity for Cora. Also, assume that Cora’s stock basis in her S corporation is $60,000 and her at-risk basis in S Corporation is $30,000. Based on this information, how much of the allocated to her will Cora actually be able to deduct on her personal return. a. zero. b. $60,000. c. $50,000. d. $30,000. e. None of the above

S Corporation generates a net loss of $100,000 in the current year. Cora is a 50% owner of S Corporation. Assume the S Corporation is not a passive activity for Cora. Also, assume that Cora’s stock basis in her S corporation is $60,000 and her at-risk basis in S Corporation is $30,000. Based on this information, how much of the allocated to her will Cora actually be able to deduct on her personal return. a. zero. b. $60,000. c. $50,000. d. $30,000. e. None of the above

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter11: Invest Or Losses

Section: Chapter Questions

Problem 46P

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