In 2014,Kipp invested $65,000 for a 30% interest in a partnership conducting a passive activity.The partnership reported losses of $200,000 in 2014 and $100,000 in 2015,Kipp's share being $60,000 in 2014 and $30,000 in 2015.How much of the losses from the partnership can Kipp deduct assuming he owns no other investments and does not participate in the partnership's operations?

Question

Quizplus · Accepted Answer

No losses are deductible in either year because the activity is passive and he owns no passive income- producing investments.Had the passive loss rules not applied,the at-risk rules would have limited the deduction to $65,000 over the two-year period.

In 2014,Kipp Invested $65,000 for a 30% Interest in a Partnership