At the beginning of 2020, Quentin purchased a 25 percent general partner interest in Maxim Partnership for $30,000. Quentin's 2020 Schedule K-1 reported that his share of Maxim's debt at year-end was $20,000 and his share of ordinary loss was $42,000. On January 1, 2021, Quentin sold his interest to another partner for $5,000 cash.
How much of his share of Maxim's loss can Quentin deduct on his 2020 return? Assume that the excess business loss limitation does not apply.Compute Quentin's recognized gain on sale of his Maxim interest.

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The Answer of At the beginning of 2020, Quentin purchased a 25 percent general partner interest in Maxim Partnership for $30,000. Quentin's 2020 Schedule K-1 reported that his share of Maxim's debt at year-end was $20,000 and his share of ordinary loss was $42,000. On January 1, 2021, Quentin sold his interest to another partner for $5,000 cash.
How much of his share of Maxim's loss can Quentin deduct on his 2020 return? Assume that the excess business loss limitation does not apply.Compute Quentin's recognized gain on sale of his Maxim interest.

At the Beginning of 2020, Quentin Purchased a 25 Percent