Logan, a 50-percent shareholder in Military Gear Incorporated (MG), is comparing the tax consequences of losses from C corporations with losses from S corporations. Assume MG has a $108,000 tax loss for the year, Logan's tax basis in his MG stock was $154,000 at the beginning of the year, and he received $79,000 ordinary income from other sources during the year. Assuming Logan's marginal tax rate is 24 percent, how much more tax will Logan pay currently if MG is a C corporation compared to the tax he would pay if it were an S corporation?

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The Answer of Logan, a 50-percent shareholder in Military Gear Incorporated (MG), is comparing the tax consequences of losses from C corporations with losses from S corporations. Assume MG has a $108,000 tax loss for the year, Logan's tax basis in his MG stock was $154,000 at the beginning of the year, and he received $79,000 ordinary income from other sources during the year. Assuming Logan's marginal tax rate is 24 percent, how much more tax will Logan pay currently if MG is a C corporation compared to the tax he would pay if it were an S corporation?

Logan, a 50-Percent Shareholder in Military Gear Incorporated (MG), Is