Question
Donna is a 20% owner in an advertising agency named Bright Ideas (BI). BI is a Subchapter S corporation. The company reported ordinary business income
Donna is a 20% owner in an advertising agency named Bright Ideas ("BI"). BI is a Subchapter S corporation. The company reported ordinary business income for the year of $150,000. Donna received a K-1 from BI reporting her allocation of this business income. Donna acquired the stock several years ago. Her basis and at-risk amount in the stock before considering her 2018 income allocation was $92,000. Donna is a passive owner with respect to this entity.
What is her passive income or loss?
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Taxation Of Individuals And Business Entities 2015
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
6th Edition
978-1259206955, 1259206955, 77862368, 978-0077862367
