On January 1, 2016, Jill contributed $18,000 of cash to the XYZ limited partnership for a 25 percent limited partnership interest (without management rights). On April 6, 2016, XYZ, limited partnership distributed $2,000 to Jill. For the year ended December 31, 2016, Jill received the following income/loss allocations from her partnership investments: (1) XYZ, limited partnership allocated a $5,000 loss to Jill (2) ABC limited partnership allocated $2,300 of income to Jill. Jill is a limited partner in ABC with no management rights. How much of the $5,000 loss from XYZ limited partnership can Jill deduct in 2016?

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The Answer of On January 1, 2016, Jill contributed $18,000 of cash to the XYZ limited partnership for a 25 percent limited partnership interest (without management rights). On April 6, 2016, XYZ, limited partnership distributed $2,000 to Jill. For the year ended December 31, 2016, Jill received the following income/loss allocations from her partnership investments: (1) XYZ, limited partnership allocated a $5,000 loss to Jill (2) ABC limited partnership allocated $2,300 of income to Jill. Jill is a limited partner in ABC with no management rights. How much of the $5,000 loss from XYZ limited partnership can Jill deduct in 2016?

On January 1, 2016, Jill Contributed $18,000 of Cash to the XYZ