In the beginning of the year, shareholder James, a 55% owner, had a $25,000 tax basis in his share of S corporation stock. As of December 31st, the S corporation reported a $50,000 operating loss and a $35,000 corporate debt due in the following month. To ease the S corporation's short-term financial cash shortage, James loaned the corporation $30,000 due in three years. What is James's reportable loss?

Answer rating: 100% (QA)

To determine Jamess reportable loss we need to consider the operating loss of the S ... View the full answer