58. Timo is the sole owner of Jazz Inc., an S corporation. On October 31, 2019, Timo...
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58. Timo is the sole owner of Jazz Inc., an S corporation.
On October 31, 2019, Timo executed an unsecured demand promissory note of $15,000 and transferred the note to Jazz (Jazz could require Timo to pay it
$15,000 on demand). When Timo transferred the note to Jazz, his tax basis in his Jazz stock was $0. On January 31, 2020, Timo paid the $15,000 to Jazz as required by the promissory note. For the taxable year ending December 31, 2019, Jazz incurred a business loss of $12,000. How much of the loss clears the stock and debt basis hurdles for deductibility?
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Related Book For
Taxation Of Individuals And Business Entities 2020
ISBN: 9781259969614
11th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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