Jeff, a 52 owner of an S corporation, has a stock basis of zero at the beginning of the year Jeff's basis in a $10,000 loan made to the corporation and evidenced by a corporate note has been reduced to zero by pass through losses During the year, his net share of the corporate taxable income is $8,000 and there is no cash distribution The corporation repays the $10,000 loan principal to Jeff a Complete the statement below that outlines the tax effects for Jeff The repayment of the loan results in a capital gain of assume that the facts above except there was no corporate note,onlyan account payable if no corporate note exists, Jeff reports ordinary income of

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Jeff, a 52  owner of an S corporation, has a stock basis of zero at the beginning of the year  Jeff's basis in a $10,000 loan made to the corporation and evidenced by a corporate note has been reduced to zero by pass through losses  During the year, his net share of the corporate taxable income is $8,000 and there is no cash distribution  The corporation repays the $10,000 loan principal to Jeff  a Complete the statement below that outlines the tax effects for Jeff  The repayment of the loan results in a capital gain of     assume that the facts above except there was no corporate note,onlyan account payable  if no corporate note exists, Jeff reports ordinary income of

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Jeff, a 52% owner of an S corporation, has a stock basis of zero at the beginning of the year. Jeff's basis in a $10,000

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