Question 22 (S corporations: use of basis in loans for entity losses) Cynthia and Doug are equal shareholders in Penguin, a calendar year S corporation. At the end of 2017, Penguin has an operating loss. Although Cynthia and Doug have the same basis in their Penguin stock, Cynthia can deduct all of her share of the corporation’s loss, while Doug cannot. How can this result take place?

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Global Corporation distributed property with an $213,000 fair market value and a $117, 150 adjusted basis to one of its shareholders. The property was subject to a $64, 433 mortgage, which the shareholder assumed. Global has ample E & P to cover any distribution made during the year. What is the amount of the shareholder's dividend income on the distribution? $fill in the blank 1 What is the shareholder's basis in the property received? $fill in the blank 2

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Becker CPA Review 19-6 Jane is the sole shareholder of Buttons, Inc. Buttons has accumulated earnings and profits (E & P) of $65,000 at the beginning of the current year. The current E & P is $35,000. Buttons pays out a property distribution to Jane during the current year with an FMV of $150,000 and an adjusted basis of $130,000. How much is a taxable dividend to Jane? a.$35,000 b.$100,000 c.$120,000 d.$150,000

During the current year, Tristan sells land to Orange Corporation for $185,000. Tristan purchased the land for investment in 2002 for $207,500. Orange Corporation is owned as follows: (Click the icon to view the ownership of Orange Corporation.) Tristan and Jay are equal partners in a separate entity, TJ Partnership. Read the requirements. Requirement a. What is Tristan's constructive ownership in Orange Corporation? Complete the table below to determine Tristan's constructive ownership in Orange Corporation. (Enter percentages as whole percent, X%. Enter a "0" for ownership with a zero percentage.) Owner Tyson (Tristan's son) Jay (Tristan's cousin) Jay's father (Tristan's uncle) Ann (Tristan's wife) Nikki (Ann's sister) Total Percentage Ownership 5% 15% 25% 30% 25% 100% Tristan's contructive ownership (%) % % % % % %

Discuss planning opportunities with organizing a corporation. Instructions Original Post Prompt: Sarah incorporates her small business but does not transfer the machinery and equipment the business uses to the corporation. Subsequently, the machinery and equipment are leased to the corporation for an annual rent. What tax reasons might Sarah have for not transferring the machinery and equipment to the corporation when the business was incorporated?

Question-1 Kiyara (single) is a 50 percent shareholder of Guardian Corporation (an S Corporation). Kiyara does not do any work for Guardian Corporation. Guardian Corporation reported $350,000 of business income for the year (2022). Before considering her business income allocation from Guardian Corporation and the self-employment tax deduction (if any), Kiyara's adjusted gross income was $300,000 (all employee salary). Kiyara has $42,500 in itemized deductions. Answer the following questions for Kiyara. A). Assuming the income allocated to Kiyara is qualified business income, what is Kiyara's deduction for qualified business income? Assume Kiyara's share of wages paid by Guardian Corporation is $62,500 and her share in the unadjusted basis of qualified property used by Guardian was $225,000.