Sam, who earns a salary of $400,000, invested $160,000 for a 40% working interest in an oil and gas limited partnership (not a passive activity) last year.Through the use of $1,600,000 of nonrecourse financing, the partnership acquired assets worth $2 million.Depreciation, interest, and other deductions related to the activity resulted in a loss in the partnership's initial year of $300,000, of which Sam's share was $120,000.Sam's share of loss from the partnership is $60,000 in the current year.How much of the loss from the partnership can Sam deduct in each year?

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The Answer of Sam, who earns a salary of $400,000, invested $160,000 for a 40% working interest in an oil and gas limited partnership (not a passive activity) last year.Through the use of $1,600,000 of nonrecourse financing, the partnership acquired assets worth $2 million.Depreciation, interest, and other deductions related to the activity resulted in a loss in the partnership's initial year of $300,000, of which Sam's share was $120,000.Sam's share of loss from the partnership is $60,000 in the current year.How much of the loss from the partnership can Sam deduct in each year?

Sam, Who Earns a Salary of $400,000, Invested $160,000 for a 40