Funky Chicken is a calendar year S corporation with the following current year information: On January 1 June Cross bought 60% of Funky Chicken for $45,000.She then loaned the company $20,000.How much of the operating loss may Cross deduct on her Form 1040? Assume the excess business loss limitation does not apply.

Question

Funky Chicken is a calendar year S corporation with the following current year information:  On January 1 June Cross bought 60% of Funky Chicken for $45,000.She then loaned the company $20,000.How much of the operating loss may Cross deduct on her Form 1040? Assume the excess business loss limitation does not apply.

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The Answer of Funky Chicken is a calendar year S corporation with the following current year information:  On January 1 June Cross bought 60% of Funky Chicken for $45,000.She then loaned the company $20,000.How much of the operating loss may Cross deduct on her Form 1040? Assume the excess business loss limitation does not apply.

Funky Chicken Is a Calendar Year S Corporation with the Following