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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Family Security

Measures and policies designed to protect the economic and social wellbeing of families, including health insurance, income support, and child welfare services.

African-Americans

People in the United States who have ancestry from the black racial groups of Africa.

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