In what order are the loss limitations for partnerships applied?
A) Tax Basis - At-Risk Amount - Passive Activity Loss.
B) Passive Activity Loss - Tax Basis - At-Risk Amount.
C) Tax Basis - Passive Activity Loss - At-Risk Amount.
D) At-Risk Amount - Tax Basis - Passive Activity Loss.

Question

Quizplus · Accepted Answer

Partnership losses are first limited by the partner's tax basis, then by the partner's at-risk amount. Any remaining passive loss may only be deducted if the partner also has passive income. Any suspended losses are carried forward indefinitely.

In What Order Are the Loss Limitations for Partnerships Applied