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In 2018, Liam Invested $100,000 for a 25% Interest in a Partnership

Question 90

Multiple Choice

In 2018, Liam invested $100,000 for a 25% interest in a partnership involved in an activity in which he is a material participant. The partnership reported losses of $340,000 in 2018 and $180,000 in 2019 with Liam's share being $85,000 in 2018 and $45,000 in 2019. How much of the losses can Liam deduct?


A) $0 in 2018, $0 in 2019.
B) $85,000 in 2018, $0 in 2019.
C) $85,000 in 2018, $15,000 in 2019.
D) $85,000 in 2018, $45,000 in 2019.
E) None of the above.

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