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:

Snake

A legless, carnivorous reptile with a long, slender body covered in scales, belonging to the suborder Serpentes.

Observational Learning

A learning process that occurs through observing the behavior of others and the outcomes of that behavior.

Cognitive Learning

Learning based upon mental processes, such as thinking, memory, understanding, and reasoning, rather than by emotional or instinctual responses.

Classical Conditioning

The development of understanding through the combination of a naturally present stimulus and one from the environment.