Mario, who is married filing a joint return, is allocated $510,000 of income and $788,000 of deductions from Perez General Partnership resulting in a $278,000 loss allocated to him for 2018. Mario's basis in the partnership is $300,000. How much of this loss must Mario carry forward to 2019?
A) $278,000
B) $250,000
C) $28,000
D) 0

Question

Quizplus · Accepted Answer

Mario's loss is limited to his basis in the partnership, which is $300,000. Therefore, he must carry forward the remaining $278,000 - $300,000 = $28,000 to 2019.

Mario, Who Is Married Filing a Joint Return, Is Allocated