Any portion of a partner's distributive share of current year partnership loss that is a nondeductible passive activity loss does not reduce the partner's outside basis in the partnership interest.

Question

Quizplus · Accepted Answer

A partner's outside basis in the partnership is reduced by their distributive share of the partnership's losses, including nondeductible passive activity losses, to the extent of the basis.

Any Portion of a Partner's Distributive Share of Current Year