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Jadyn, a shareholder-employee of an S corporation, received a Schedule K-1 showing an ordinary loss of $10,000 in box 1. That loss was limited by

Jadyn, a shareholder-employee of an S corporation, received a Schedule K-1 showing an ordinary loss of $10,000 in box 1. That loss was limited by his basis in the S corporation, and he was only able to deduct $4,000 on his income tax return. taxes. . What will happen to the remaining $6,000 loss?

1. she will be lost because she was unable to deduct it in the year the loss occurred. 2. It will be returned for up to two years. 3. It will be extended until she can deduct the loss. 4. It will be deducted as a capital loss on an investment.

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