Last year, Ted invested $100,000 for a 50% interest in a partnership in which he was a material participant.The partnership incurred a loss, and Ted's share was $150,000.Which of the following statements is incorrect?

Question

Quizplus · Accepted Answer

All the statements provided are correct within the context of partnership taxation and at-risk rules. Ted's nondeductible loss due to the at-risk limitation can indeed be carried forward for future use, his ability to deduct carried over losses is contingent upon his at-risk amount in the partnership, and he is limited to deducting losses up to the amount he has at risk.

Last Year, Ted Invested $100,000 for a 50% Interest in a Partnership