A Calendar Year C Corporation Reports a $41,000 NOL in 2019

question 108

Multiple Choice

A calendar year C corporation reports a $41,000 NOL in 2019, but it elects S status for 2020 and generates an NOL of $30,000 in that year. At all times during 2020, the stock of the corporation was owned by the same 10 shareholders, each of whom owned 10% of the stock. Kris, one of the 10 shareholders, holds an S stock basis of $2,300 at the beginning of 2020. How much of the 2020 loss, if any, can she deduct?

• A) $-0-
• B) $2,300
• C) $3,000
• D) $7,100

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