How shall distribution to big jim be treated in tax return, Taxation

+44 141 628 6080
[email protected]

How shall distribution to big jim be treated in tax return

Assignment Task:

GBC was owned 100% by Jim Beeeeezosss (aka Big Jim).

GBC paid a $3 million distribution on 12.31.2020 to Big Jim!

Big Jim's basis in GBC stock was $100,000 (pursuant to sec 351, he transferred assets with a 100,000 basis to GBC in exchange for stock when it was formed).

We learn GBC has shown a loss since inception 3 years ago - so 2020 was a good year!

2019 and 2018 both show no taxable income as the 2017 excess loss was carried forward, just like in 2020.

1. How shall this 3 million distribution to Big Jim be treated in Big Jim's tax return?

2. Is it a dividend or something else?

3. If something else, what is it?

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Taxation: How shall distribution to big jim be treated in tax return

Reference No:- TGS03257450

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Asked Questions

Illustrate the sapir-worf hypothesis

What is the Sapir-Worf Hypothesis? Using the assigned video from class, discuss the relationship between Sapir-Worf and the relationship between Creole

Discuss alfaro-lefevre four-circle critical thinking model

Problem: Using Alfaro-LeFevre's Four-Circle Critical Thinking Model, write an analytical essay using the following topic guide:

Problem regardig great war

This is related to the "Great War". Please use this paragraph of ideas and suggestions to answer the following three questions.

Explain a significant event or series of events

''Writing'' for an audience of your campus classmates, many of whom have just met you, you will describe and explain a "significant"

What specifically about the cartoon

: Post a copy of the cartoon to this assignment. Then give an explanation of the cartoon. Give the context of the cartoon:

Develop an email asking them

Problem: Please develop an email asking them if they have time next week to chat cause today I'll be running few meetings.

What is the sapir-worf hypothesis

What is the Sapir-Worf Hypothesis? Using the assigned video from class, discuss the relationship between Sapir-Worf

Request for Solution File

Ask an Expert for Answer!!

Taxation: How shall distribution to big jim be treated in tax return

Reference No:- TGS03257450

Have a Question? (oR Write a Review)

Recent Questions Asked Taxation

Q : Determine the capital allowances finefoods can claim

Q : Discuss farming subsidies are generating externalities

Q : Critical analysis on factors affecting tax evasion

Q : Write fifteen facts about the video

Q : How shall distribution to big jim be treated in tax return

Q : Why people who insure themselves feel calmer in term of risk

Q : What changes might bring costs down

Q : Describe the controversial topic and cultural identifier

Q : How does consequentialism relate to ethical orientation