IMG 0729JPEG Photos Edit & Create Share a See all photos | Add to a creation 10
ID: 2530035 • Letter: I
Question
IMG 0729JPEG Photos Edit & Create Share a See all photos | Add to a creation 10 Jan owns all the shares of Surf City, an S Corp. She actively run s the ration has no debt to anyone except Jan. Her adjusted business, and the basis is $100,000. She has also loaned $50,000 to Surf City recorded by a note. a) Surf City has a nonseparately stated loss for year 1 of b) What is Jan's basis in the stock and the debt $130,000. How much can Jan deduct. at the end of year 1? at is Jan's adjusted basis in the stock and the debt at the end of year 212 O Type here to search 3:05 PM 4/24/2018Explanation / Answer
a) $130,000 can be deducted. $100,000 can be deducted from stock basis and the balance fom stock basis and the balance $30,000 will be deducted from debt basis.
b) Stock Basis - $0, Debt = $20,000. as stated above, stock basis reduced due to loss(100,000-100,000). and the balance loss is allocated to debt basis (50,000-30,000)
c) basis in the stock = $15,000, basis in the debt + $20,000. - nonseparately stated income increased the stock basis and the debt stock remains the same