McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver

Exercise 36

Larry recently invested $20,000 (tax basis) in purchasing a limited partnership interest.His at-risk amount is also $20,000.In addition, Larry's share of the limited partnership loss for the year is $2,000, his share of income from a different limited partnership was $1,000, and he had $3,000 of dividend income from the stock he owns.How much of Larry's $2,000 loss from the limited partnership can he deduct in the current year