Solution-How much of this loss may J deduct

How much of this loss may J deduct

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Reference no: EM132549847

Question - JKLM is an S corporation that has been in existence for seven years. J is a 25% shareholder and has a basis in his S corporation stock at the beginning of the year of $60,000. Because the corporation was having cash flow problems this year J loaned the S corporation $30,000. The S corporation has an ordinary loss for the year of $400,000. How much of this loss may J deduct on his return assuming it is not a passive loss?

a. $0.

b. $60,000.

c. $90,000.

d. $100,000.

Reference no: EM132549847

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How much of this loss may J deduct

Reference no: EM132549847

Reference no: EM132549847

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