On January $1,2022.$ Leo paid $$22,100$ for $5$ percent of the stock in BLS$,$ an S corporation. In November, he loaned $$11,100$ to On January $1,2022.$ Leo paid $$22,100$ for $5$ percent of the stock in BLS$,$ an S corporation. In November, he loaned $$11,100$ to

BLS in return for a promissory note. BLS generated a $$748,000$ operating loss in $2022.$

Required:

a$.$ How much of his share of the loss can Leo deduct on his $2022$ return? Assume the excess business loss limitation does

not apply.

b$.$ Compute Leo's basis in his BLS stock and his BLS note at the end of $2022.$

Complete this question by entering your answers in the tabs below.

How much of his share of the loss can Leo deduct on his $2022$ return? Assume the excess business loss limitation does not

apply.

Deduction

BLS in return for a promissory note. BLS generated a $$748,000$ operating loss in $2022.$

Required:

a$.$ How much of his share of the loss can Leo deduct on his $2022$ return? Assume the excess business loss limitation does

not apply.

b$.$ Compute Leo's basis in his BLS stock and his BLS note at the end of $2022.$

Complete this question by entering your answers in the tabs below.

How much of his share of the loss can Leo deduct on his $2022$ return? Assume the excess business loss limitation does not

apply.

Deduction