On January $1,2022,$ Leo paid $$20,300$ for $5$ percent of the stock in BLS$,$ an S corporation. In November, he loaned $$9,250$ to BLS in

return for a promissory note. BLS generated a $$950,000$ operating loss in $2022.$

Required:

a$.$ How much of his share of the loss can Leo deduct on his $2022$ return? Assume the excess business loss limitation does not apply.

b$.$ Compute Leo's basis in his BLS stock and his BLS note at the end of $2022.$

Complete this question by entering your answers in the tabs below.

How much of his share of the loss can Leo deduct on his $2022$ return? Assume the excess business loss limitation does not

apply.