Ferris Owns an Interest In,but Does Not Materially Participate In,an

question 53

Multiple Choice

Ferris owns an interest in,but does not materially participate in,an activity.He has $30,000 at-risk.The business produced a loss in the current year and Ferris's share of the loss is $45,000.Assuming Ferris has no passive income,how much of the $45,000 loss will be deductible by Ferris?

• A)$0.
• B)$30,000.
• C)$45,000.
• D)Cannot be determined.