David loaned $100,000 to his S corporation in2020 while he had a basis in the stock of the corporation of $50,000. Regrettably, the S corporation still reported a loss for 2020 of $195,000. Can David use this loss in whole or in part to offset ordinary income that he earned in 2020 in the practice of law? Explain what is allowed as a deduction on his individual income tax return and show how this affects his basis calculations.