Diana is a 10% owner in an advertising agency named Bright Ideas ("BI") (EIN 20-1234567). BI is a Subchapter S corporation. The company reported ordinary business income for the year of $150,000. Diana received a K-1 from BI reporting her allocation of this business income. Diana acquired the stock several years ago. Her basis in the stock before considering her 2015 income allocation was $92,000. Diana is a passive owner with respect to this entity. Diana is also a 20% owner in Natural Sunshine, Inc. ("NS") (EIN 24-9876543). NS is a Subchapter S corporation. The company reported an ordinary business loss for the year of ($80,000). Diana received a K-1 from BI reporting her allocation of this business loss. Diana acquired the stock several years ago. Her basis in the stock before considering her 2015 loss allocation was $45,000. Diana is a passive owner with respect to this entity.