Martin Is a Limited Partner in a Card Shop

question 77

Multiple Choice

Martin is a limited partner in a card shop. At the end of the partnership's tax year, Martin's basis in the partnership interest is $25,000 ($5,000 cash investment plus a $20,000 share of nonqualified nonrecourse financing) . Martin's distributive share of partnership losses for the tax year is $33,000. Martin has $30,000 of passive income this year from other activities. How much of the $33,000 partnership loss can be used by Martin in the year of the loss?

• A)$5,000
• B)$25,000
• C)$30,000
• D)$33,000

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Definitions:

Self-Management

The ability to manage one's own behavior, emotions, and thoughts in a productive and healthy manner.

Cognitive Change

Alterations in thinking, intelligence, and problem-solving as a result of growth, learning, or experience.

Positive Emotional Reaction

A favorable affective response to a stimulus, characterized by feelings such as happiness, joy, or excitement.

Situation Modification

Strategies or actions taken to change an environment or context in order to improve outcomes or resolve issues.