Daxson, Inc., a calendar year S corporation, is partly owned by Jean Michele, whose beginning stock...

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Daxson, Inc., a calendar year S corporation, is partly owned by Jean Michele, whose beginning stock basis is $125,000. During the year Jean Micheles share of a Jaxon long-term capital gain (LTCG) is $14,900, and her share of an ordinary loss is $64,800. Jean Michele also receives an $11,000 cash distribution.

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Answer 1

Answer #1

Ans- Ordinary loss=$64,800

Calculation of Jean Michele's Deductible Loss

Particulars	Amount
Beginning Stock Basis	$125,000
Add: Long Term Capital Gain	$14,900
Sub-Total	$139,900
Less: Cash Distribution	$11,000
Basis for loss limitation purpose	$128,900
Deductible Loss	$128,900

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Answer 2

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