Question
What kind of basis creates an S corporation loss deduction?
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Answer
Direct-loan debt basis.
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Question
Why can retaining C corporation earnings be a useful planning strategy?
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Answer
It defers shareholder-level dividend tax while funds are reinvested.
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Question
Why do partnerships use special allocations?
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Answer
To match tax items with the partners' economics.
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Question
Why can a redemption under §302 be preferable to an ordinary dividend?
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Answer
It can produce capital gain treatment using basis.
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