Irvin's Adjusted Basis in the Gamma Partnership Is Zero at the Beginning

question 71

Multiple Choice

Irvin's adjusted basis in the Gamma Partnership is zero at the beginning of the current year. He has a $15,000 suspended loss from the previous year. During the current year, Gamma's operating income is $30,000. Arvin is a 40% partner, and he receives a distribution of $10,000 cash this year. If Arvin materially participates in Gamma's operations, how much of the suspended loss can he deduct?

• A)$-0-
• B)$2,000
• C)$9,000
• D)$10,000
• E)$12,000

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Definitions:

Television Advertising

The use of TV commercials to promote products, services, or ideas to viewers, utilizing visual and audio elements to capture attention.

Advantages

The favorable factors or benefits that give something a superior position or make it more effective compared to others.

Disadvantages

The negative aspects or drawbacks associated with a particular decision, situation, product, or service.

Sales Promotion

Marketing activities designed to increase sales in the short term, often through discounts, coupons, or special offers.