In 2017, Kipp Invested $65,000 for a 30% Interest in a Partnership

question 2

Multiple Choice

In 2017, Kipp invested $65,000 for a 30% interest in a partnership conducting a passive activity. The partnership reported losses of $200,000 in 2017 and $100,000 in 2018, Kipp's share being $60,000 in 2017 and $30,000 in 2018. How much of the losses from the partnership can Kipp deduct assuming he owns no other investments and does not participate in the partnership's operations?

• A)$0 in 2017; $30,000 in 2018.
• B)$60,000 in 2017; $30,000 in 2018.
• C)$60,000 in 2017; $5,000 in 2018.
• D)$60,000 in 2017; $0 in 2018.
• E)None of the above.