George Is a Limited Partner in the GLH Partnership

question 32

Multiple Choice

George is a limited partner in the GLH Partnership. His basis is $40,000 before considering the current year operations and includes a $20,000 recourse debt share and a $10,000 nonrecourse debt share. The nonrecourse debt is not treated as qualified nonrecourse financing. GLH reported a $200,000 loss for the year of which George's 40% share is $80,000. George has passive income of $50,000 from another activity (not eligible for the special real estate deduction) . He has no business losses for the year from other sources. How much of the $80,000 GLH loss can George deduct this year?

• A) $10,000.
• B) $30,000.
• C) $40,000.
• D) $50,000.
• E) $80,000.

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Definitions:

Congruence

Congruence relates to the degree of agreement, harmony, or similarity between individual desires, values, or interests and external realities or expectations.

Organization's Members

Individuals who belong to and are actively involved in a particular organization, contributing to its activities and goals.

Congruence

Indicates a state of agreement, harmony, or compatibility between two or more aspects, such as values and actions.

Upward Communication

This refers to the process in which information flows from the lower levels of a hierarchy to the upper levels in an organization.