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:

Ideology

Ideology refers to a system of ideas, values, and beliefs that influence the way individuals perceive and interact with the world.

Belief Systems

A set of principles or tenets that form the basis of somebody’s opinion, philosophies, or practices about the world or life.

Distorting Reality

The act of altering or manipulating perceptions of real-life events or facts, often to serve a specific narrative or agenda.

Misrepresenting Reality

The act of presenting false or distorted information as truthful, often to manipulate public perception or opinion.