At the end of 2021, Mint, Inc, had accumulated earnings and proftis (AEP) of ($210,000). During 2021, Mint, Inc. had cu
Posted: Mon May 02, 2022 9:37 am
At the end of 2021, Mint, Inc, had accumulated earnings and
proftis (AEP) of ($210,000). During 2021, Mint, Inc. had
current earnings and profits of $11,000. At year end, Mint
distributes an asset to Hector (the sole shareholder of Mint) with
a fair market value of $80,000 and an adjusted basis of
$20,000. Hector’s basis in Mint stock (prior to this
distribution) is $100,000. Hector has substantial income from
other sources and is in the 37% tax bracket.
proftis (AEP) of ($210,000). During 2021, Mint, Inc. had
current earnings and profits of $11,000. At year end, Mint
distributes an asset to Hector (the sole shareholder of Mint) with
a fair market value of $80,000 and an adjusted basis of
$20,000. Hector’s basis in Mint stock (prior to this
distribution) is $100,000. Hector has substantial income from
other sources and is in the 37% tax bracket.