Business, 07.04.2020 23:30 rome58

Dmitri, a shareholder in an S corporation, has a basis of $60,000 in his S corporation stock. His share of this year's S corporation loss is $75,000. Dmitri takes out a $20,000 nonrecourse loan from a local bank and lends the proceeds to the S corporation. As a result of these transactions:a. Dmitri's stock basis is $80,000 before deducting the loss.
b. Dmitri can deduct the loss of $75,000.
c. Dmitri has a stock basis of $60,000 and a loan basis of $20,000 before deducting any loss.
d. Dmitri's stock basis is $5,000 after deducting the loss.
e. None of these choices are correct.

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Dmitri, a shareholder in an S corporation, has a basis of $60,000 in his S corporation stock. His sh...

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