Question
In the year incurred, passive loss generally: Are not deductible Are deductible only when they exceed portfolio losses Are deductible only against passive income All
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In the year incurred, passive loss generally:
Are not deductible
Are deductible only when they exceed portfolio losses
Are deductible only against passive income
All of the above
None of the above
In the year incurred, passive loss generally:
Are not deductible | ||
Are deductible only when they exceed portfolio losses | ||
Are deductible only against passive income | ||
All of the above | ||
None of the above |
1.3334 points
QUESTION 63
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Acme, an S corporation since inception, makes a distribution to its sole shareholder, Sam, of $75,000 when Sam's adjusted basis in his stock of Acme is $100,000. As a result Sam has:
Zero gross income
$75,000 of gross income taxable at ordinary rates
A taxable dividend at capital gains rates of $75,000
A $25,000 loss
None of the above
1.3334 points
QUESTION 64
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George owns all the stock of Acme, Inc. (adjusted basis of $30,000) as an investment. If he receives a distribution from Acme of $75,000 when corporate accumulated earnings and profits are $10,000, and current earnings and profits are $15,000, He has
$25,000 dividend,
$30,000 Return of Capital
$20,000 Capital Gain
All of the abov
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