gacts for 20 22. corporation, incurs a $80,000 net operating loss. Walter, the s

Question

gacts for 20 22. corporation, incurs a $80,000 net operating loss. Walter, the sole shareholder, has a $75,000 stock basis at the beginning of the year. made a direct loan to the s corporation in the amount of $20,000. The cu amount outstanding is $20, 000 and Walter's basis in the loan is $20, 000 distributions are made to Walter during the current year During the year, Salamander, Inc., a calendar year Malter 20. At year end, Walter has a s basis in the stock. 21. At the end of the year, Walter has a $ to Salamander. basis in the loan 22. The total amount of the net operating loss that can be deducted by Walter for the current year is:

Explanation / Answer

Basis in the stock = $75,000
Basis in Loan = $20,000
Total operating loss = $80,000

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