Suppose Clampett, Incorporated, terminated its S election on August 28, 2020. At the end of the S corporation's short tax year ending on August 28, J.D.'s stock basis and at-risk amounts were both zero (he has never had debt basis), and he had a suspended loss of $20,450. In 2021, J.D. made additional capital contributions of $5,450 on March 15 and $13,350 on September 20. How much loss may J.D. deduct in 2021?
A)$0
B)$5,450
C)$18,800
D)$20,450
E)None of the choices are correct.

Question

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The Answer of Suppose Clampett, Incorporated, terminated its S election on August 28, 2020. At the end of the S corporation's short tax year ending on August 28, J.D.'s stock basis and at-risk amounts were both zero (he has never had debt basis), and he had a suspended loss of $20,450. In 2021, J.D. made additional capital contributions of $5,450 on March 15 and $13,350 on September 20. How much loss may J.D. deduct in 2021?
A)$0
B)$5,450
C)$18,800
D)$20,450
E)None of the choices are correct.

Suppose Clampett, Incorporated, Terminated Its S Election on August 28