Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In the past several years, Shakira had loaned money to Shakira Inc. (an S corporation) to help the corporation keep afloat in a downturn. Her
In the past several years, Shakira had loaned money to Shakira Inc. (an S corporation) to help the corporation keep afloat in a downturn. Her stock basis in the S corporation is now $0, and she has deducted $45,750 in losses, reducing her debt basis from $152,500 to $106,750. Things appear to be turning around this year, and Shakira Inc. repaid Shakira $30,500 of the $152,500 outstanding loan. What is Shakiras income, if any, on the partial loan repayment?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started