A is a shareholder in X Co., an S corporation.

In 20x3, A's share of X Co.'s net operating loss is $40,000.

On 12/3/x3, A has a basis in his X Co. stock of $10,000.

A also has a loan due from X Co. for which he has a $30,000 basis.

In 20x4, A's share of X Co.'s income is $80,000.

 

1.) In 20x3, A may deduct on his return ?

2.) As of 1/1/x5, Calculate A's basis in his stock and debt.

Answer rating: 100% (QA)

In 20x3 A may deduct his share of X Cos net operating loss NOL of 40000 on his tax return Assuming t... View the full answer