Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 2

In 2009, Kirsten invested $20,000 for a 10% partnership interest (not a passive activity). The partnership has losses of $150,000 in 2009 and $250,000 in 2010. Kirsten's share of the partnership's losses is $15,000 in 2009 and $25,000 in 2010. How much of the losses from the partnership can Kirsten deduct? a. $0 in 2009 and $0 in 2010.
B) $15,000 in 2009 and $5,000 in 2010.
C) $15,000 in 2009 and $25,000 in 2010.
D) $20,000 in 2009 and $0 in 2010.