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Need help with this problem. Need step by step instructions. It has to do with accounting, Corp. Tax. Thank u in advance A calendar year
Need help with this problem. Need step by step instructions. It has to do with accounting, Corp. Tax. Thank u in advance
A calendar year C corporation reports a $41,000 NOL in 2014, but it elects S status for 2015 and generates an NOL of $30,000 in that year. At all times during 2015, the stock of the corporaton was owned by the same 10 shareholders, each of whom owned 10% of the stock. Kay, one of the 10 shareholders, holds an S stock basis of $2,300 at the beginning of 2015.
Explain the tax effect of the 2015 loss on Kay?
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