SCorp_Example - 1245 gain 20,000 STCL from sale of stock...

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Tax 4001 Hageman S Corporation Example Sammy is a 25% owner in SG Corporation, an electing S corporation. At the beginning of 2009, SG had $50,000 in liabilities and Sammy's basis in his shares was $25,000. At the end of 2009, SG's liabilities had decreased to $42,000. 2009 Activity: Sales $ 120,000 COGS 40,000 Depreciation Expense 10,000 Admin Expense 5,000 Guaranteed Payment to Sammy 15,000 1231 Gain 21,000
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Unformatted text preview: 1245 gain 20,000 STCL from sale of stock 6,000 LTCL from sale of stock 4,000 LTCG from sale of stock 15,000 Charitable Contribution 4,500 Distributions to Partners* 10,000 *Sammy received $2,500. PART I (1) Compute SG's (A) Ordinary income and (B) Separately Stated Items. (2) What would Sammy report on his 2009 individual tax return as a result of SG activities? PART II Compute Sammy's basis at the end of 2009....
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