Clifford Johnson has a limited partnership investment and a rental condominium. Clifford actively manages the rental condominium.

Question:

Clifford Johnson has a limited partnership investment and a rental condominium. Clifford actively manages the rental condominium. During 2012, his share of the loss from the limited partnership was $12,000, and his loss from the rental condo was $16,000. Assuming Clifford's modified adjusted gross income is $120,000 for 2012, complete Form 8582 on page 4-39.

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...