06 Dec PLEASE READ all of the attached documents so that you know what to do for this assignment.
PLEASE READ all of the attached documents so that you know what to do for this assignment. Also please see the note below as it is part of one of the attached documents.
NOTE:
For the S Corporation Project, particularly with regard to Questions 4 and 5, please note that, per I.R.C. sec. 1367(a)(2)(A) and (B), distributions are made from AAA and basis before deductions.
Basis cannot be negative and AAA can be negative for operations but not distributions.
The result of distributions preceding deductions may be that deductions will need to be added back to AAA and basis and may not be currently taken, if deductions exceed basis. Distributions in excess of basis may also be affected.
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