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:

Organizational Culture

The collective norms, ideologies, and habits that form the cultural and mental framework of a company or institution.

Glass Cubicles

Transparent, often partitioned workspaces used in offices to create semi-private areas for employees.

Values

The principles or standards of behavior that are regarded as important or beneficial by an individual or society.

Coercive Power

The ability to influence others' behavior via threats, punishment, or negative reinforcements.