Answer:
Investors may invest a combined $50 million within a 12-month period.
Explanation:
According to the section, there are two pricing rates in Regulation A In the 1st Tier, for offering upto $20 million over a 12-month span and another 2nd Tier, for offerings upto $50 million over a 12-month period.
Therefore, as per the given situation the right answer is Investors are permitted to invest a combined $50 million over a 12-month period.
Answer:
Is this reading then answering questions or....
Explanation:
I dont get the question sry but I'll try to help
Answer:
The long term capital gain= $30000-$25000
The long term capital gain= $5000
The basis in stock will be zero after the distribution.
Explanation:
Step 1 of 3
Tax treatment of amount distributed to shareholders:
The amount received as distribution to a shareholder under S Corporation is equal to the cash and fair market value of property distributed. The distribution is considered as tax-free to the limit that it does not exceed shareholder’s basis in the company’s stock. Any amount received in excess of basis will be treated as capital gain.
Step 2 of 3
However, taxation depends whether S Corporation has ever been a C Company or it posses’ accumulated earnings and profits. If it was never a C Corporation or doesn’t holds AEP then distribution equals to basis of share in S Corporation is a tax free gain for shareholder. Gain over and above basis is taxed as capital gains.
Step 3 of 3
In the given problem, C is a shareholder in S Corporation. He receives $30,000 as cash distribution. His basis in stock is $25,000. The distribution up to basis of stock is tax free distribution and above that is charged to capital gains. It is as follows-
Thus, capital gain of is taxable in hands of C. His basis in S Corporation will reduced to zero as entire distribution is over and above basis of his stock.
Yes because you are helping put something together and are not being paid for it.
