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Scenario $2$: Corporate Structure Shenanigans

Emily owns $60\%$ of an S$-$Corporation. The S$-$Corp had the following income$/$loss:

Ordinary Business Income: $$50,000$

Long$-$term capital loss: $$30,000$

Income from a separately stated passive activity: $$20,000$

Emily's basis in the S$-$Corporation is $$80,000.$ She did not receive any distributions.

Wages $($from unrelated job$)$: $$45,000$

Interest and Dividend Income: $$1,200$

Itemized Deductions: $$16,000$

Allowable deduction for self$-$employment tax: None

Questions

Analyze how each type of S$-$Corp income$/$loss flows through to Emily's tax return.

Are there any limitations on the losses she can deduct?

Calculate AGI, Taxable Income, and Total Tax Liability.

How does her basis in the S$-$Corp change at the end of the year?