Rebecca Is a Partner in the RST Partnership, Which Is

question 69

Multiple Choice

Rebecca is a partner in the RST Partnership, which is not publicly traded. Her allocable share of RST's passive ordinary losses from a nonrealty activity for the current year is ($60,000) . Rebecca has a $40,000 adjusted basis (outside basis) for her interest in RST (before deduction of any of the passive losses) . Her amount "at risk" under § 465 is $30,000 (before deduction of any of the passive losses) . She also has $25,000 of passive income from other sources. How much of her ($60,000) allocable loss can Rebecca deduct on her current year's tax return?

• A) $25,000.
• B) $30,000.
• C) $40,000.
• D) $60,000.
• E) None of the above.

---

Definitions:

Neuron Cell Bodies

The part of a neuron (nerve cell) that contains the cell nucleus and other organelles, serving as the processing unit of the neuron.

Ganglia

Structures made up of a cluster of neurons in the peripheral nervous system, functioning in transmitting nerve signals.

Voltage Fluctuations

Variations in the electrical potential difference which can lead to unstable power supply and possibly damage electronic devices.

Electroencephalograph (EEG)

A medical instrument that records the electrical activity of the brain, often used in the diagnosis of epilepsy and other brain disorders.