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21 October, 21:37

Suppose Clampett, Inc. terminated its S election on August 28, 2018. At the end of the S corporation's short tax year ending on August 28, J. Ds stock basis and at-risk amounts were both zero (he has never had debt basis), and he had a suspended loss of $20,750. in 2019, J. D. made additional capital contributions of $5,750 on March 15 and $14,250 on September 20. How much loss may J. D. deduct in 2019? $5,750 so. $20,000 None of he choices are corect

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  1. 21 October, 22:06
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    correct option is $5,750

    Explanation:

    given data

    amounts were both zero

    suspended loss = $20,750

    additional capital contributions = $5,750

    to find out

    How much loss may J. D. deduct in 2019

    solution

    loss may J. D. deduct in 2019 is $5,750

    we know that post transmination period end of 15 September

    it is extended here due date of final tax return

    it is standardize so that J. D. only deduct loss to extend of his contribution on march

    so 2nd contribution make on 15 September

    so correct option is $5,750
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