On January 1, Year 1, Mr. Karl purchased 50% of Olive, Inc., an S corporation, for $75,000. At the end of Year 1, Olive, Inc., incurred an ordinary loss of $160,000. How much of the loss can Mr. Karl deduct on his personal income tax return for Year 1?

Answer rating: 100% (QA)

As Mr Karl owns 50 of Olive Inc he is entitled to deduct 50 of any loss... View the full answer