boston company, an electing s corporation, has an operating loss of $400,000 for the current year. hank owns a 40% interest in the company and is a material participant. at the beginning of the year, hank's adjusted basis in the stock is $30,000. during the year, the company borrows $100,000 with a recourse note. how much of the loss can hank deduct on his current-year income tax return?