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Chapter_14_Solutions

Chapter_14_Solutions - If this is a sole-proprietor No...

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HA 4422 Review Session Chapter 14 Your contributions to a business $20,000 Your share of income in year 1 $10,000 Before amounts paid to you Your share of loss in year 2 $5,000 Before amounts paid to you Amounts paid to you (as salary where possible) In year 2 $4,000 Your loan to company $2,000 Your guarantee of a bank loan to company $1,000 Using the information above and disregarding payroll taxes, what is your basis:
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Unformatted text preview: If this is a sole-proprietor: No basis concept but if there was: same as partnership If this is a general partnership: $20,000 $10,000-$5,000-$4,000 $2,000 $1,000 $24,000 If this is an S-corporation: $20,000 $10,000-$5,000-$4,000 would be additional loss in year 2 $2,000 $23,000 If this is a C-corporation: $20,000 Basis in loan is $2,000...
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