Rebecca Is a Limited Partner in the RST Partnership, Which

question 147

Multiple Choice

Rebecca is a limited partner in the RST Partnership, which is not publicly traded. Her allocable share of RST's passive ordinary losses from a nonrealty activity for the current year is ($60,000) . Rebecca has a $40,000 adjusted basis (outside basis) for her interest in RST (before deduction of any of the passive losses) . Her amount "at risk" is $30,000 (before deduction of any of the passive losses) . She also has $25,000 of passive income from other sources. She has no business losses for the year from other sources. How much of her ($60,000) allocable RST loss can Rebecca deduct on her current year's tax return?

• A) $25,000
• B) $30,000
• C) $40,000
• D) $60,000
• E) None of the above

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Definitions:

Accounts Receivable

Amounts owed to a company by customers for goods or services delivered on credit.

Current Ratio

A liquidity measure that evaluates a company's ability to pay short-term obligations with its current assets.

Book Values

The net value of a company's assets, subtracting the total liabilities from the total assets.

Market Values

The value at which an asset is exchanged in a competitive auction scenario.