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.