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

Exercise 60

In 2007, Jerry acquired an interest in a partnership in which he is not a material participant. The partnership was profitable until 2009. Jerry's basis in the partnership interest at the beginning of 2009 was $55,000. In 2009, his share of the partnership loss was $40,000. In 2010, his share of the partnership income was $18,000. How much can Jerry deduct in 2009 and 2010?