A number of years ago, Kay acquired an interest in a partnership in which she is not a material participant Kays basis in her partnership interest at the beginning of 2013 is $40,000 Kays share of the partnership loss is $35,000 in 2013, while her share of the partnership income is $15,000 in 2014 ...

In 2013 Kay cannot deduct any of the passive loss because ...

A number of years ago, Kay acquired an interest in a partnership in which she is not

Question:

A number of years ago, Kay acquired an interest in a in which she is not a material participant. Kay’s basis in her interest at the beginning of 2013 is $40,000. Kay’s share of the loss is $35,000 in 2013, while her share of the income is $15,000 in 2014. How much may Kay deduct in 2013 and 2014, assuming she owns no other passive activities?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...