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Q28. A shareholder receives liquidating property with FMV $50,000 and has $65,000 stock basis. Under liquidation rules, what is the recognized gain or loss?

Q16. A shareholder materially participates in the S-corp, but losses exceed the shareholder’s total stock and debt basis. Which limitation still prevents deduction even with full material participation? 

Q27. An S-corp with both AAA and E&P makes a distribution. Under §1368, which ordering rule applies? 

Q8. Sand Harbor Analytics’ passive investment income exceeded 25% of receipts for three consecutive years, but it has no accumulated E&P. What happens under §1362(d)(3)? 

Q30. Which of the following is a separately stated item on the S-corp Schedule K-1?

Q3. Blue Horizon Corp. received unanimous shareholder consent for its S-election but mailed Form 2553 on March 21, six days late. No late-relief request was submitted. Under S-corporation election rules, which outcome applies? 

Q20. A shareholder examines their Schedule K-1 and wants to identify items requiring separate treatment because of individual-level limits. Which of the following is separately stated?

Q26. A corporation converted from C-corp to S-corp three years ago and still holds assets with unrealized built-in gain from the conversion date. Which event triggers the built-in gains (BIG) tax within the 5-year recognition period? 

Q6. Pinecrest Advisors lists 103 shareholders, but 14 are cousins descending from one great-grandparent. Applying the family aggregation rules, how many shareholders count for the 100-shareholder limit? 

Q18. A shareholder’s stock basis is zero. Additional S-corp losses are allocated that exceed available basis. Under ordering rules, which amount is reduced next before losses are suspended?