Shanna Is a Partner in the Fern Partnership, Which Is

question 2

Multiple Choice

Shanna is a partner in the Fern Partnership, which is not publicly traded.Her allocable share of Fern's passive ordinary losses from a nonrealty activity for the current year is ($200,000) .Shanna has a $140,000 adjusted basis (outside basis) for her interest in Fern (before deduction of any of the passive losses) .Her amount "at risk" under § 465 is $110,000 (before deduction of any of the passive losses) .She also has $75,000 of passive income from other sources.How much of the $200,000 passive loss allocated to her can Shanna deduct on her current year's tax return?

• A)$75,000
• B)$110,000.
• C)$140,000.
• D)$200,000.
• E)None of the above.

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Definitions:

Fibrous Connective Tissue

A type of connective tissue that is characterized by a high density of collagen fibers, providing strength and elasticity.

Syndesmosis

A type of fibrous joint in which two bones are joined together by a band of connective tissue, allowing for slight movement.

Synovial Joint

A type of joint that is surrounded by a fluid-filled capsule, allowing for smooth movement between bones.

Periosteum

A dense, fibrous membrane covering the outer surface of bones, providing nourishment and involved in bone growth and repairing.