At the beginning of Year 1, you invested $400,000 in exchange for 400 shares of ABC, Inc. ABC is an S corporation and, including your 400 shares, has exactly 1,000 shares issued and outstanding (i.e., yours plus 600 others).

During Year 1, you received cash distributions from ABC totaling $175,000. You eventually received a K-1 from ABC reporting your proportionate (%) share of ABCs total $750,000 Year 1 taxable income, which you included on Schedule E of your Year 1 Form 1040.

During Year 2, you received cash distributions from ABC totaling $190,000. You later received a K-1 from ABC reporting your share of ABCs total $875,000 Year 2 net operating loss, which you included on Schedule E of your Year 2 Form 1040.

During Year 3, you received cash distributions from ABC totaling $200,000. You later received a K-1 from ABC reporting your share of ABCs total $1,400,000 Year 3 taxable income, which you included on Schedule E of your Year 3 Form 1040.

After all of the above, what is your adjusted tax basis in your 400 shares of ABC?

Question

At the beginning of Year 1, you invested $400,000 in exchange for 400 shares of ABC, Inc. ABC is an S corporation and, including your 400 shares, has exactly 1,000 shares issued and outstanding (i.e., yours plus 600 others).

During Year 1, you received cash distributions from ABC totaling $175,000. You eventually received a K-1 from ABC reporting your proportionate (%) share of ABCs total $750,000 Year 1 taxable income, which you included on Schedule E of your Year 1 Form 1040.

During Year 2, you received cash distributions from ABC totaling $190,000. You later received a K-1 from ABC reporting your share of ABCs total $875,000 Year 2 net operating loss, which you included on Schedule E of your Year 2 Form 1040.

During Year 3, you received cash distributions from ABC totaling $200,000. You later received a K-1 from ABC reporting your share of ABCs total $1,400,000 Year 3 taxable income, which you included on Schedule E of your Year 3 Form 1040.

After all of the above, what is your adjusted tax basis in your 400 shares of ABC?

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Question

At the beginning of Year 1, you invested $400,000 in exchange for 400 shares of ABC, Inc. ABC is an S corporation and, including your

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