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Dominique and Terrell are joint owners of a bookstore. The business operates as an S corporation....

Dominique and Terrell are joint owners of a bookstore. The business operates as an S corporation. Dominique owns 65%, and Terrell owns 35%. The business has the following results in the current year:

Revenue $1,500,000
Business expenses 750,000
Charitable contributions 50,000
Short-term capital losses 4,500
Long-term capital gains 6,000

How do Dominique and Terrell report these items for tax purposes?

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Answer #1
Total Dominique ( 65% ) Terrell ( 35%)
Revenue $1,500,000
Business expenses 7,50,000
Ordinary income 7,50,000 487500 262500 To Sch. E, page 2
Charitable contributions 50,000 32500 17500 To Sch.A
Short-term capital losses -4,500 -2925 -1575 To sch. D
Long-term capital gains 6,000 3900 2100 To sch. D
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