Randall Bradwick's share of his S corporation net operating loss is $230,000 this year. His stock basis is $200,000, and he loaned the corporation $180,000, which created a debt basis for him of $180,000. Mr. Bradwick does not materially participate in the corporation or its activities. He does not meet the rental income exception. From other sources, Bradwick reports $100,000 of passive income. How much of the corporate net operating loss can Bradwick deduct?
Randall Bradwick's share of his S corporation net operating loss is $230,000 this year. His stock basis is $200,000, and he loaned the corporation $180,000, which created a debt basis for him of $180,000. Mr. Bradwick does not materially participate in the corporation or its activities. He does not meet the rental income exception. From other sources, Bradwick reports $100,000 of passive income. How much of the corporate net operating loss can Bradwick deduct?
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 30P
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Transcribed Image Text:Randall Bradwick's share of his S corporation net operating loss is $230,000 this year. His stock
basis is $200,000, and he loaned the corporation $180,000, which created a debt basis for him
of $180,000. Mr. Bradwick does not materially participate in the corporation or its activities. He
does not meet the rental income exception. From other sources, Bradwick reports $100,000 of
passive income. How much of the corporate net operating loss can Bradwick deduct?
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