How much can randall deduct due to these losses

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Randall owns 800 shares in Fabrication, Inc., an S corporation in Moss Hill, Texas. In 2014, the basis in his stock is $30,000, before the adjustment for this year’s losses. During 2014, Randall’s share of the corporation’s ordinary loss is $20,000, and his share of its capital loss is $15,000. How much can Randall deduct due to these losses?

No deduction.

$15,000 ordinary loss; $10,000 capital loss.

$17,143 ordinary loss; $12,857 capital loss.

$20,000 ordinary loss; $15,000 capital loss.

Reference no: EM131072106

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