Bailey Owns a 20% Interest in a Partnership (Not Involved

question 54

Multiple Choice

Bailey owns a 20% interest in a partnership (not involved in real estate) in which his at-risk amount was $25,000 at the beginning of the year.During the year,Bailey receives a distribution of $20,000 from the partnership.The partnership produces an $80,000 loss during the year.If you ignore the passive loss rules,Bailey's deductible loss for the year is:

• A)$5,000.
• B)$20,000.
• C)$25,000.
• D)$80,000.