Cal and Ann Are a Married Couple Filing a Joint

question 131

Multiple Choice

Cal and Ann are a married couple filing a joint return.Ann earns a $700,000 salary as a bank executive.The couple has $150,000 of interest and dividend income.Cal is a 50% partner and material participant in CD Partnership.CD has incurred a $1.5 million ordinary loss in 2019,and Cal's share is $750,000.Cal's basis is large enough to absorb the loss.With respect to the partnership loss,the couple will deduct

• A)$750,000.
• B)$700,000.
• C)$510,000.
• D)$255,000.

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Definitions:

Skepticism

The practice of questioning the validity or authenticity of certain knowledge claims without taking them at face value.

Plausibility

The quality of seeming reasonable or probable.

Fiduciary Relationship

A legal and ethical relationship of trust between two or more parties, typically involving a caretaker and a beneficiary.

Expert

Refers to someone who is both experienced and learned in a given subject matter area or professional practice field.