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Smith inc an s corporation has the following Aaa 10000 Previously taxed income 5000 Earnings and profits 15000 Other adjustments account 3000 Jason who owns
Smith inc an s corporation has the following Aaa 10000 Previously taxed income 5000 Earnings and profits 15000 Other adjustments account 3000 Jason who owns 100 percent of Smith inc has a stock basis of 40000 Jason received distribution of 50000. How is the distribution taxed 5000 capital gain 15000 capital gain 15000 dividend income 50000 ordinary income
Aaa 10000
Previously taxed income 5000
Earnings and profits 15000
Other adjustments account 3000
Jason who owns 100 percent of Smith inc has a stock basis of 40000 Jason received distribution of 50000.
How is the distribution taxed
5000 capital gain
15000 capital gain
15000 dividend income
50000 ordinary income
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