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 must Jose carry forward to 2020?
A)$278,000
B)$255,000
C)$23,000
D)0

Question

Quizplus · Accepted Answer

Jose can only deduct losses up to his basis in the partnership. Since his basis is $300,000 and the loss is $278,000, he can deduct the full loss, leaving no amount to carry forward. However, if the question implies a different context or additional limitations, the carryforward would be the difference between the loss and the basis, which is $23,000.

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