Terri Owns a 50 Percent Interest in the TT Partnership

question 50

Multiple Choice

Terri owns a 50 percent interest in the TT Partnership.At the beginning of the year, her basis in her partnership interest was $75,000.The partnership reports a $40,000 loss for the year and distributes $4,000 cash to Terri.What is Terri's deductible loss (included in her gross income) as a result of her 50 percent interest in TT?

• A)$75,000
• B)$51,000
• C)$20,000
• D)$16,000

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