John, a limited partner of Candy Apple, LP, is allocated $29,500 of ordinary business loss from the partnership. Before the loss allocation, his tax basis is $19,500 and his at-risk amount is $9,500. John also has ordinary business income of $19,500 from Sweet Pea, LP, as a general partner and ordinary business income of $5,500 from Red Tomato as a limited partner. How much of the $29,500 loss from Candy Apple can John deduct currently?
A) $5,500
B) $9,500
C) $24,000
D) $29,500

Question

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The Answer of John, a limited partner of Candy Apple, LP, is allocated $29,500 of ordinary business loss from the partnership. Before the loss allocation, his tax basis is $19,500 and his at-risk amount is $9,500. John also has ordinary business income of $19,500 from Sweet Pea, LP, as a general partner and ordinary business income of $5,500 from Red Tomato as a limited partner. How much of the $29,500 loss from Candy Apple can John deduct currently?
A) $5,500
B) $9,500
C) $24,000
D) $29,500

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