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Diana is a 10% owner in an advertising agency named Bright Ideas
(“BI”) (EIN 20-1234567). BI is a
Subchapter S corporation. The company reported ordinary business
income for the year of $150,000.
Diana received a K-1 from BI reporting her allocation of this
business income. Sarah acquired the stock
several years ago. Her basis in the stock before considering her
2017 income allocation was $92,000.
Sarah is a passive owner with respect to this entity.
How can this be filled...