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:

Acknowledgements

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You-viewpoint

A communication strategy focusing on the interests, needs, or benefits of the audience, often used in business or persuasive writing.

Goodwill

The intangible asset that arises as a result of the acquisition of one company by another for a premium value, representing elements like reputation, brand, intellectual property, and commercial secrets.

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