Question

33.Tori purchased 50 percent of the shares of corporation H, a calendar year S corporation, for $7,000. She also guaranteed a corporate loan of $6,000. This year, H had an operating loss of $22,000. What is the amount of H's loss that Tori can deduct on her individual income tax return?

Group of answer choices

a)$11,000

b)$10,000

c)$7,000

d)$0

Answer 1

$7,000

Explanation:

In case of, Helen purchased 50 percent of the shares of HIJ Corp., a calendar year S corporation, for $7,000. She also guaranteed a corporate loan of $6,000. For 2011, HIJ Corp. had an operating loss of $22,000. Without taking into consideration any loss limitations under the passive activity loss rules or the at risk rules, what is the amount of HIJ Corp.’s loss that Helen can deduct on her individual income tax return for 2011 under the subchapter S rules?

Then it is 11,000

We have to consider loss limitations, So answer is 7,000

Therefore, Option C is correct.

answered by: anonymous