Debbie Corp is formed on January 1, 2017 when Debbie contributed $250,000 in exchange for 100 % of the stock of Debbie Corp. Debbie Corp made an S Corporation election effective on January 1, 2017 . During 2017 , Debbie , Corp had a $200,000 long term capital gain , $ 100,000 of municipal bond interest , and an ordinary loss of $700,000 . During 2017 , Debbie Corp made cash distributiond to Debbie of $300,000.

What amount of the ordinary loss may Debbie deduct on her 2017 income tax return ?

Answer rating: 100% (QA)

As an S Corporation Debbie Corps income and losses flow through to its shareholders in proportion to ... View the full answer