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 2019.Mario's basis in the partnership is $300,000.How much of this loss must Mario carry forward to 2020?
A)$278,000
B)$250,000
C)$28,000
D)0

Question

Quizplus · Accepted Answer

Mario can deduct the entire $278,000 loss in 2019 because his basis in the partnership ($300,000) is more than the loss allocated to him. Therefore, there is no loss to carry forward to 2020.

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