Anton is single and a self-employed plumber. His net income from his business is $56,000. He has

Question:

Anton is single and a self-employed plumber. His net income from his business is $56,000. He has income of $6,000 and an $8,000 loss from a rental property in which he actively participates.
Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...