Question
On January 2, 2018, Tim loans his S corporation $10,000. By the end of 2018, Tim's stock basis is zero, and the basis in his
On January 2, 2018, Tim loans his S corporation $10,000. By the end of 2018, Tim's stock basis is zero, and the basis in his note has been reduced to $8,000. During 2019, the company's operating income is $10,000. The company makes 2019 distributions to Tim of $8,000. Tim reports a(n):
a.$8,000 LTCG.
b.Loan basis of $10,000.
c.Stock basis of $2,000.
d.$2,000 LTCG.
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Wiley CPAexcel Exam Review April Study Guide Regulation 2017
Authors: Wiley
2nd Edition
1119369436, 978-1119369431
