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Gary owns 800 shares in Gaetti Inc., an S corporation.In 2020, the basis in his stock is $30,000 before the adjustment for this year's losses.
Gary owns 800 shares in Gaetti Inc., an S corporation.In 2020, the basis in his stock is $30,000 before the adjustment for this year's losses. During 2020, Gary's share of the corporation's ordinary loss is $20,000, and his share of its capital loss is $15,000. How much can Gary deduct due to these losses?
A. $20,000 ordinary loss; $10,000 capital loss
B. $20,000 ordinary loss; $15,000 capital loss
C. No deduction
D. $17,143 ordinary loss; $12,857 capital loss
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