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In 2010,Kipp Invested $65,000 for a 30% Interest in a Partnership

question 92

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In 2010,Kipp invested $65,000 for a 30% interest in a partnership conducting a passive activity.The partnership reported losses of $200,000 in 2010 and $100,000 in 2011,Kipp's share being $60,000 in 2010 and $30,000 in 2011.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?


Definitions:

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets (cash, marketable securities, and accounts receivable).

Financial Data

Quantitative information about a company's financial position, performance, and cash flow, used for analysis and decision-making.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with its most liquid assets without having to sell inventory.

Financial Data

Quantitative information about financial conditions, transactions, and performance of a person, company, or entity.

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