Question
Mark Davenport owns 40% of Davenport Corporation, a calendar year-end S corporation. His beginning basis in his stock is $33,000 and his Schedule K-1 reflected
Mark Davenport owns 40% of Davenport Corporation, a calendar year-end S corporation. His beginning basis in his stock is $33,000 and his Schedule K-1 reflected the following items for the current year:
Ordinary business loss | $25,000 | |
Dividend income | $ 4,000 | |
Section 1231 gain | $ 6,000 | |
Distributions | $20,000 |
What is Mark's ending basis in his stock for the current year in Davenport Corporation? How much of Mark's loss is deductible?
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Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
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34th Edition
0135919460, 978-0135919460
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