If a partnership allocates losses to the partners, the partners must first apply the passive loss limitations, then the basis limitation, and finally the at-risk limitations. If all three hurdles are met, the partner may deduct the loss.

Question

Quizplus · Accepted Answer

The correct order is: first apply the basis limitation, then the at-risk limitations, and finally the passive loss limitations.

If a Partnership Allocates Losses to the Partners, the Partners