Jeff owns $50\%$ of an S corporation's stock with a basis in his stock of $$50,000$ on January $1.$ In addition, the S corporation owes Jeff $$30,000$ on January $1.$ Jeff$$s share of the S corporation$$s ordinary loss is $$75,000$ for the current year. Jeff$$s share of the S corporation$$s ordinary income next year is $$10,000.$ On December $31$ of this second year, the note is repaid. Due to the repayment of the note, Jeff must report

No gain or loss.

$$15,000$ long$-$term capital gain.

$$30,000$ long$-$term capital gain.

None of the above.