Ashley is a shareholder in a calendar year S corporation. At the beginning of the year, Ashley’s basis in her S stock is $18,000. During the year, Ashley loaned the corporation $5,000. During the year, the corporation reported an ordinary loss, of which Ashley’s share is $25,000.

How much of the $25,000 loss can Ashley deduct on her personal income tax return?

a. $0

b. $18,000

c. $23,000

d. $25,000