Question

Suppose Clampett, Inc. terminated its S election on August 28, 2018. At the end of the S corporation's short tax year ending on August 28, J. Ds stock basis and at-risk amounts were both zero (he has never had debt basis), and he had a suspended loss of $20,750. in 2019, J. D. made additional capital contributions of $5,750 on March 15 and $14,250 on September 20. How much loss may J. D. deduct in 2019? $5,750 so. $20,000 None of he choices are corect

Answer 1

correct option is $5,750

Step-by-step explanation:

given data

amounts were both zero

suspended loss = $20,750

additional capital contributions = $5,750

to find out

How much loss may J. D. deduct in 2019

solution

loss may J. D. deduct in 2019 is $5,750

we know that post transmination period end of 15 September

it is extended here due date of final tax return

it is standardize so that J.D. only deduct loss to extend of his contribution on march

so 2nd contribution make on 15 September

so correct option is $5,750