Kelly is a partner in the JK partnership. She does not materially participate. Her adjusted outside basis in the partnership is $75,000. Of this, $25,000 comes from non-recourse debt. Her share of partnership losses from JK is $60,000, and she has passive income of $25,000 from other activities. What is the maximum amount of the losses from JK that she is able to deduct?

Answer rating: 100% (QA)

SOLUTION THE ADJUSTED BASIS REPRESENT THE AMOUNT KEL... View the full answer