Frank and Fiory are owners of F Corp. Frank owns 800 shares with a basis of $8,000 and Fiory owns 200 shares with a basis of $2,000. Frank has the corporation buy back 100 of his shares @ $120 per share, planning on reporting a $2,000 long-term capital gain on his 1040. As Frank’s tax advisor, what would you tell him about how the IRS might view this arraignment
Frank and Fiory are owners of F Corp. Frank owns 800 shares with a basis of $8,000 and Fiory owns 200 shares with a basis of $2,000. Frank has the corporation buy back 100 of his shares @ $120 per share, planning on reporting a $2,000 long-term capital gain on his 1040. As Frank’s tax advisor, what would you tell him about how the IRS might view this arraignment
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter13: Corporations: Earning & Profits And Distributions
Section: Chapter Questions
Problem 34P
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Frank and Fiory are owners of F Corp. Frank owns 800 shares with a basis of $8,000 and Fiory owns 200 shares with a basis of $2,000. Frank has the corporation buy back 100 of his shares @ $120 per share, planning on reporting a $2,000 long-term capital gain on his 1040.
As Frank’s tax advisor, what would you tell him about how the IRS might view this arraignment
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