Sheila Jackson is a 50% shareholder in Washington, Inc., an S corporation. Critical Thinking This year, Jackson's share of the Washington loss is $100,000. Jackson reports income from several other sources. Identify at least four tax issues related to the effects of the S corporation loss on Jackson's tax return.

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Business

Seth Wagner

6 May, 09:05

Sheila Jackson is a 50% shareholder in Washington, Inc., an S corporation. Critical Thinking This year, Jackson's share of the Washington loss is $100,000. Jackson reports income from several other sources. Identify at least four tax issues related to the effects of the S corporation loss on Jackson's tax return.

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Everett · Answer 1

she must find her stock basis to determine how much of the loss can be claimed against ordinary income.

• she must determine the nature of the loss.

• will incomes from other sources, absent of the loss, qualify her for an AMT adjustment?

• will the shareholder's basis allow full recognition of los or will there be a suspended portion.