JKLM is an S corporation that has been in existence for seven years. J is a 25% shareholder and has a basis in his S corporation stock at the beginning of the year of $60,000. Because the corporation was having cash flow problems this year J loaned the S corporation $30,000. The S corporation has an ordinary loss for the year of $400,000. How much of this loss may J deduct on his return assuming it is not a passive loss?

$ 0.

$ 60,000.

$ 90,000.

$100,000.