Jose, who is single, is allocated $510,000 of income and $788,000 of deductions from KYX General Partnership resulting in a $278,000 loss allocated to him for 2018. Jose's basis in the partnership is $300,000. How much of this loss can Jose deduct in 2018?
A) 0
B) $250,000
C) $278,000
D) $300,000

Question

Quizplus · Accepted Answer

Jose's deductible loss is limited to his basis in the partnership, which is $300,000.

Jose, Who Is Single, Is Allocated $510,000 of Income and $788,000