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Ken Has a $40,000 Loss from an Investment in a Partnership

Question 113

Essay

Ken has a $40,000 loss from an investment in a partnership in which he does not materially participate. He paid
$30,000 for his interest. How much of the loss is disallowed by the at-risk rules? How much is disallowed by the passive activity loss rules?

Correct Answer:

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The at-risk limits disallow $1...

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