Book Update Tracking Log

Last Update: 03/03/2025

• Page 18
  
  • Typo: If your basis hits zero and you receive cash from the business beyond this zero basis, you’ll have to pay ordinary income tax.
  • Correction: If your basis reaches zero and you receive cash distributions beyond this, the excess distributions are generally taxed as capital gains. However, in some cases, certain types of income could be taxed at ordinary rates.