René Is a Partner in the RST Partnership,which Is Not

question 132

Multiple Choice

René is a partner in the RST Partnership,which is not publicly traded.Her allocable share of RST's passive ordinary losses from a nonrealty activity for the current year is ($60,000) .René has a $40,000 adjusted basis (outside basis) for her interest in RST (before deduction of any of the passive losses) .Her amount "at risk" under § 465 is $30,000 (before deduction of any of the passive losses) .She also has $25,000 of passive income from other sources.How much of her ($60,000) allocable loss can René deduct on her current year's tax return?

• A)$25,000.
• B)$30,000.
• C)$40,000.
• D)$60,000.
• E)None of the above.

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Definitions:

Trade (Functional)

The activities and processes involved in the distribution of goods and services, facilitating the movement from producer to consumer while adding value through functions like transportation and warehousing.

Quantity Discounts

Quantity discounts refer to the reductions in price given by suppliers to buyers based on the volume of goods purchased.

Quantity Discounts

Price reductions offered to customers who purchase in large volumes, encouraging bulk buying and fostering customer loyalty.

Unit Costs

The cost incurred to produce, store, and sell one unit of a product, including materials, labor, and overhead expenses.