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

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A number of years ago, Kay acquired an interest in a partnership in which she is not a material participant. Kay's basis in her partnership interest at the beginning of 2015 is $40,000. Kay's share of the partnership loss is $35,000 in 2015, while her share of the partnership income is $15,000 in 2016. How much may Kay deduct in 2015 and 2016, assuming that 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...
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South Western Federal Taxation 2017 Comprehensive

ISBN: 9781305874169

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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