Jackson is the sole owner of JJJ corp. (an S corporation). At the beginning of 2014, Jackson's basis in his JJJ stock was $8,000. For 2014, JJJ reported a ($30,000) ordinary business loss (not a passive loss) and $4,000 of long-term capital gains. Assuming Jackson's tax basis and his at risk amount are the same, what is Jackson's stock basis at the end of the year and how much of the ordinary business loss is he allowed to deduct in 2014?

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The Answer of Jackson is the sole owner of JJJ corp. (an S corporation). At the beginning of 2014, Jackson's basis in his JJJ stock was $8,000. For 2014, JJJ reported a ($30,000) ordinary business loss (not a passive loss) and $4,000 of long-term capital gains. Assuming Jackson's tax basis and his at risk amount are the same, what is Jackson's stock basis at the end of the year and how much of the ordinary business loss is he allowed to deduct in 2014?

Jackson Is the Sole Owner of JJJ Corp