An S Corporation Shareholder's Allocable Share of Ordinary Business Income

question 81

True/False

An S corporation shareholder's allocable share of ordinary business income (loss)is classified as self-employment income for tax purposes.

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Definitions:

Rectification

The legal process of correcting a mistake in a contract or legal document so that it accurately reflects the intentions of the parties involved.

Person's Judgment

The capacity or ability of an individual to make considered decisions or come to sensible conclusions.

Bound in Contract

A legal state or condition wherein parties are legally obligated to fulfill the terms and conditions stipulated in a contract.

Non Est Factum

A legal defense in contract law where a person claims that a signature on a contract was signed by mistake, without understanding its nature.