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On January 1, Jim purchased 50 shares of Potomac Corporation stock for $50,000. Potomac is a calendar year S corporation and Jim's share of the
On January 1, Jim purchased 50 shares of Potomac Corporation stock for $50,000. Potomac is a calendar year S corporation and Jim's share of the company's earnings for the year is $20,000. His separately stated items include $6,000 in long-term capital gains and $7,000 of Section 1231 losses. In addition, Potomac distributes $10,000 in cash to Jim during the year.
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Heres how to calculate Jims basis in Potomac at the end of the year 1 Initial Basis Jim purchased 50 ...
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South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities
Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
20th Edition
978-0357109144, 978-0357686652, 978-1305874824
