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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
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.
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