Cactus Company is a calendar year S corporation with the following current year information: On January 1, John James bought 50% of Cactus Company stock for $30,000. How much of the operating loss may John deduct on his Form 1040?

Question

Cactus Company is a calendar year S corporation with the following current year information:  On January 1, John James bought 50% of Cactus Company stock for $30,000. How much of the operating loss may John deduct on his Form 1040?

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The Answer of Cactus Company is a calendar year S corporation with the following current year information:  On January 1, John James bought 50% of Cactus Company stock for $30,000. How much of the operating loss may John deduct on his Form 1040?

Cactus Company Is a Calendar Year S Corporation with the Following