In 2016,Nigel Contributes Cash of $10,000 in Exchange for a 20

question 30

Essay

In 2016,Nigel contributes cash of $10,000 in exchange for a 20% interest in the NDP Partnership.The partnership is not a passive activity.For 2016,the partnership had an ordinary loss of $80,000,interest income of $2,000,dividends of $5,000,and capital gains of $4,000.How much of the current year loss is deductible by Nigel and what is Nigel's at-risk amount on December 31,2016?

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Definitions:

Misuse

Misuse is the incorrect, improper, or excessive use of something, often leading to negative outcomes or harm.

Preventive Approach

Strategic actions taken to avoid potential problems or diseases before they occur.

Aging

The process of becoming older, a series of biological changes that occur in all living organisms over time, often leading to a gradual decrease in physical and sometimes mental capacity.

Discrimination

Unjust or prejudicial treatment of different categories of people, often based on race, age, sex, or disability.