Cassandra Is a 10% Limited Partner in C&C,Ltd

question 74

Essay

Cassandra is a 10% limited partner in C&C,Ltd.Her basis in the interest is $60,000 before loss allocations,including her $30,000 share of the partnership's nonrecourse debt.(This debt is not qualified nonrecourse financing.) Cassandra is also a 10% limited partner in MNOP,in which her basis is $30,000.Cassandra is allocated an $80,000 loss from C&C,and $20,000 of income from MNOP.How much of the loss from C&C may Cassandra deduct? Under what Code provisions are the remaining losses suspended?

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Definitions:

Child Support Payment

Payments made by a noncustodial parent to support their child or children's living expenses.

Provisional Income

Income that is not guaranteed or fixed, often used in reference to determining the taxability of certain benefits such as Social Security.

Social Security

A federal program in the United States that provides retirement, disability, and survivors benefits to eligible individuals.

Married, Filing Jointly

A tax filing status available to married couples that allows them to file one tax return jointly, combining their incomes and deductions.