Marian Owns 40% of Addison Company, a Partnership

question 32

Multiple Choice

Marian owns 40% of Addison Company, a partnership. Marian's adjusted basis in the partnership is $32,000 at the beginning of the year. During the current year, Marian receives a $10,000 cash distribution from the partnership. Addison Company reports a $100,000 operating loss for the current year. If Marian is not a material participant in Addison Company and has no other passive activities, how much of the partnership loss can she deduct on her income tax return?

• A)$-0-
• B)$10,000
• C)$22,000
• D)$40,000

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Definitions:

Empathizing Difficulty

The challenge or inability to understand and share the feelings of another person.

Visiting Clients

The act of meeting with clients or customers outside of one’s own office or place of business, often to discuss service, support, or partnership opportunities.

Centrality

Refers to the importance or influence of a particular node within a network, indicating its relative significance in the communication or functional structure.

Silent Authority

A form of power or influence exerted through presence or reputation rather than explicit verbal commands.