Abigail, Bobby, and Claudia are equal owners in Lafter, an S corporation that was a C corporation several years ago. While Abigail and Bobby actively participate in running the company, Claudia has a separate day job and is a passive owner. Consider the following information for 2015:
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As of January 1, 2015, Abigail, Bobby, and Claudia each have a basis in Lafter stock of $15,000 and a debt basis of $0. On January 1, the stock basis is also the at-risk amount for each shareholder.•
Bobby and Claudia also are passive owners in Aggressive LLC, which allocated business income of $14,000 to each of them in 2015. Neither has any other source of passive income (besides Lafter, for Claudia).