ected by some bilities

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 17MCQ
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An S corporation shareholder's basis
may be affected by some or all
business liabilities
a. Never
b. Because the basis is increased by
the amount of debt directly owed by
the S corporation to the particular
shareholder when there is a net loss
allocated to that shareholder.
c. Because the basis is increased by
the shareholder's share of all business
liabilities.
d. When there is AEP from C
corporation years.
Transcribed Image Text:An S corporation shareholder's basis may be affected by some or all business liabilities a. Never b. Because the basis is increased by the amount of debt directly owed by the S corporation to the particular shareholder when there is a net loss allocated to that shareholder. c. Because the basis is increased by the shareholder's share of all business liabilities. d. When there is AEP from C corporation years.
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