Ted was named CFO of Agency environment friendly July 1, 2016.
Ted was named CFO of Agency environment friendly July 1, 2016. On that date the company made him an curiosity free mortgage throughout the amount of $500,000 on the state of affairs he use it for getting 10,000 shares of agency stock at $50 per share. Assume the market charge of curiosity is 6%. In 2016 Ted had $12000 web funding earnings (not counting funding curiosity payments). Assume that he had totally different itemized deductions in further of the same old deduction.
What can be the web affect on his taxable earnings of the curiosity free mortgage from the employer?Web improve of $15,000Web decrease of $15,000Web improve of $three,000No effectIf in 2017 Ted had web funding earnings of $32,000(not counting funding curiosity expense) How loads will he be allowed to deduct ias funding curiosity?Assume Ted sells half the company shares (5000) in 2018 for $75 per share. How loads earnings or obtain will he acknowledge on the sale?