Timo is the sole owner of Jazz Inc., an S corporation. On October 31, 2015, Timo executed an unsecured demand promissory note of $15,000 and transferred the note to Jazz (Jazz could require Timo to pay it $15,000 on demand). When Timo transferred the note to Jazz, his tax basis in his Jazz stock was zero. On January 31, 2016, Timo paid the $15,000 to Jazz as required by the promissory note. For the taxable year ending December 31, 2015, Jazz incurred a business loss of $12,000. How much of the loss clears the stock and debt basis hurdles for deductibility?

How much Timo deduct for its own