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John’s Basis in Maggy Corporation Assignment

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February 18th, 2020

(CO 8) John is the sole shareholder of Maggy Corporation, a qualified D corporation. On January 1, Year 1, John has a basis in Maggy Corporation of $2000. The corporation’s Year 1 tax return shows the following: Ordinary income $10,000 Interest income $1,000 Nondeductible expenses $2,000 Real estate rental loss $5,000 Sec. 179 deduction $1,500 Distribution to John $3,000 What is John’s basis in Maggy Corporation at the end of year 1? .

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