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John, a Limited Partner of Candy Apple, LP, Is Allocated

Question 83

Multiple Choice

John, a limited partner of Candy Apple, LP, is allocated $30,000 of ordinary business loss from the partnership. Before the loss allocation, his tax basis is $20,000 and his at-risk amount is $10,000. John also has ordinary business income of $20,000 from Sweet Pea, LP, as a general partner and ordinary business income of $5,000 from Red Tomato as a limited partner. How much of the $30,000 loss from Candy Apple can John deduct currently?


A) $5,000
B) $10,000
C) $25,000
D) $30,000

Correct Answer:

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