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 2019.Jose's basis in the partnership is $300,000.How much of this loss can Jose deduct in 2019?
A)0
B)$255,000
C)$278,000
D)$300,000

Question

Quizplus · Accepted Answer

Jose can deduct up to his basis in the partnership, which is $300,000. However, the loss allocated to him is $278,000, so he can deduct the full $278,000 loss.

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