21- 63. A shareholder purchases 30 percent of the stock of an S corporation two-thirds of the way through the year for $20,000. The S corporation...

21- 63. A shareholder purchases 30 percent of the stock of an S corporation two-thirds of the way through the year for $20,000. The S corporation incurs an operating loss of $300,000 for the year. What is the amount that the shareholder may deduct on his personal income tax return, assuming the at-risk and passive activity rules do not apply?

Question:A shareholder purchases 30 percent of the stock of an S corporation two-thirds of the way through theyear for $20,000. The S corporation incurs an operating loss of $300,000 for the...