Striker paid $50,000 for 20% of the stock in an S-corporation (i.e. to become a 20% owner) in which he materially participates.
In 2022, the S-corporation loss for the year is $ 200,000.In 2023, the S-corporation loss for the year is $ 100,000.How much of a loss can Striker deduct on his own personal tax return in 2023?
(Assume Striker did not contribute more capital to the business and also never received a distribution from the business.)
a. $50,000
b. $0$10,000
c. $30,000
c. $20,000
e. $40,000