Rosie is a partner in the Cardinal Partnership
Question # 00105135
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Updated on: 09/19/2015 10:19 PM Due on: 10/19/2015
Rosie is a partner in the Cardinal Partnership, which is not publicly traded. Her allocable share of Cardinal’s passive ordinary losses from a nonrealty activity for the current year is ($100,000). Rosie has a $60,000 adjusted basis (outside basis) for her interest in Cardinal (before deduction of any of the passive losses). Her amount “at risk” under § 465 is $45,000 (before deduction of any of the passive losses). She also has $30,000 of passive income from other sources. How much of the $100,000 passive loss allocated to her can Rosie deduct on her current year’s tax return?
a. $30,000
b. $45,000.
c. $60,000.
d. $100,000.
e. None of the above
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Rating:
/5
Solution: Rosie is a partner in the Cardinal Partnership