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See guide for # 3 # 8 which appears after 7 1 1 . The guide shows in chronological order what is happering in these

See guide for #3 #8 which appears after 711. The guide shows in chronological order what is happering in these problems. IN.ADDITION. TRACK MARYS BASIS IN STOCKILDANS FOR EACH YEAR.
3. Mary manages S Corp and owns 100% of the stock. On January 1,2023. Mary's basis in the stock is $70,000. For the year 20235 Copp had a loss of $100,000. How will Mary treat her share of the loss on her 2023 income tax return?
4. Refer to question 3 above. In 2024,5 Corporation had income of $40,000. How will Mary treat her share of the income on her 2024 income tax return.
5. Refer to question 3 above. Assume Mary had also loaned the S Corp $20,000 on January 1,2023. The loan is evidenced by a note. Given the facts in question 3, how will Mary treat her share of the loss on her 2023 income tax return?
6. Refer to question 5 above. On January 1,2024 the $ Corp repays the $20,000 loan to Mary. S Corp "breaks even" in 2024(no income or loss). What must Mary report on her 2024 income tax return, if anything?
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