Jackson is the sole owner of JJJ corp.(an S corporation).At the end of 2017,Jackson's basis in his JJJ stock and his at risk amount was $0.Jackson also had a $10,000 suspended ordinary business loss (suspended at the tax basis and at risk level).JJJ's S election was terminated effective the end of the day on December 31,2017.If Jackson contributes $6,000 cash to JJJ on July 1,2018 and $3,000 cash on January 5,2019,how much of his $10,000 suspended loss will he be allowed to deduct and how much disappears unused?

Question

Quizplus · Accepted Answer

The Answer of Jackson is the sole owner of JJJ corp.(an S corporation).At the end of 2017,Jackson's basis in his JJJ stock and his at risk amount was $0.Jackson also had a $10,000 suspended ordinary business loss (suspended at the tax basis and at risk level).JJJ's S election was terminated effective the end of the day on December 31,2017.If Jackson contributes $6,000 cash to JJJ on July 1,2018 and $3,000 cash on January 5,2019,how much of his $10,000 suspended loss will he be allowed to deduct and how much disappears unused?

Jackson Is the Sole Owner of JJJ Corp