In 2018, Kipp Invested $65,000 for a 30% Interest in a Partnership

question 17

Multiple Choice

In 2018, Kipp invested $65,000 for a 30% interest in a partnership conducting a passive activity. The partnership reported losses of $200,000 in 2018 and $100,000 in 2019, Kipp's share being $60,000 in 2018 and $30,000 in 2019. How much of the losses from the partnership can Kipp deduct assuming he owns no other investments and does not participate in the partnership's operations?

• A) $0 in 2018? $30,000 in 2019.
• B) $60,000 in 2018? $30,000 in 2019.
• C) $60,000 in 2018? $5,000 in 2019.
• D) $60,000 in 2018? $0 in 2019.
• E) None of the above.

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Definitions:

Central Fissure

A deep groove in the brain's cortex that separates the frontal lobe from the parietal lobe.

Frontal Lobes

Regions of the brain involved in decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

Temporal Lobes

Part of the cerebral cortex involved in processing auditory information and is critical for the understanding of language and the formation of memories.

Occipital Lobe

The area of the cerebral cortex situated in the brain's rear, tasked with interpreting visual data.