Ask Question
4 September, 22:11

Suppose that at the beginning of 2019 Jamaal's basis in his S corporation stock was $36,000 and Jamaal has directly loaned the S corporation $9,830. During 2019, the S corporation reported an $92,500 ordinary business loss and no separately stated items. How much of the ordinary loss is deductible by Jamaal if he owns 50 percent of the S corporation?

+2
Answers (1)
  1. 4 September, 22:59
    0
    Answer and Explanation:

    Since Jamaal owns 50% of the S corporation so $92,500 x 50% = $46,250.

    However, this loss would offset both the stock basis and debt basis. And this cannot go below zero.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose that at the beginning of 2019 Jamaal's basis in his S corporation stock was $36,000 and Jamaal has directly loaned the S ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers