Suppose Clampett, Inc., terminated its S election on August 28, 2019. At the end of the S corporation's short tax year ending on August 28, J.D.'s stock basis and at-risk amounts were both zero (he has never had debt basis), and he had a suspended loss of $20,350. In 2020, J.D. made additional capital contributions of $5,350 on March 15 and $13,050 on September 20. How much loss may J.D. deduct in 2020

Since Suppose Clampett, Inc., terminated its S election on August 28, 2019, it implies that the ending date for post transition termination period is September 15, 2019. This date is the extended due dat for S corporation to file final tax return.

As J.D. made additional capital contributions of $5,350 on March 15 and $13,050 on September 20, only the $5,350 contribution made on March 15 falls within the post transition termination period of September 15, while the $13,050 contribution made on September 20 falls outside the post transition termination period.

Therefore, J.D. May only deduct $5,000 in 2020.