If a Shareholder Does Not Have Sufficient Stock Basis to Deduct

question 3

Multiple Choice

If a shareholder does not have sufficient stock basis to deduct his or her share of an S corporation's losses and deductible items, what are the tax consequences?

• A)The excess losses and deductions may be carried back 3 years and then forward up to 5 years to offset other income items of identical character.
• B)The excess losses and deductions are suspended until the corporation's or shareholder's future activities generate sufficient new basis against which to deduct the losses
• C)The excess losses and deductions may not be deducted at any time and can never provide tax benefit.
• D)None of the above.

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Definitions:

Leadership Behavior

Involves the actions, practices, and attitudes leaders use to influence their team's performance, motivation, and engagement.

Ohio State Studies

A series of studies that helped to identify leadership behaviors and styles by focusing on the behaviors of leaders and their effects on group performance.

University Of Michigan Studies

Research conducted at the University of Michigan, highlighting two critical leadership styles: employee-oriented and production-oriented.

Blake And Mouton

Creators of the Managerial Grid, a model for assessing leadership styles based on concern for people and concern for production.