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Jackson is the sole owner of JJJ Corporation (an S corporation). At the end of 2020, Jackson's basis in his JJJ stock and his at-risk

Jackson is the sole owner of JJJ Corporation (an S corporation). At the end of 2020, Jackson's basis in his JJJ stock and his at-risk amount were $0. Jackson also had a $10,000 suspended ordinary business loss (suspended at the tax-basis and at-risk level). JJJ's S election was terminated effective the end of the day on December 31, 2020. If Jackson contributes $6,000 cash to JJJ on July 1, 2021, and $3,000 cash on January 5, 2022.



How much of his $10,000 suspended loss will he be allowed to deduct and how much disappears unused?

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