In 2015, Kirsten invested $20,000 for a 10% partnership interest (not a passive activity). The partnership has

Question:

In 2015, Kirsten invested $20,000 for a 10% partnership interest (not a passive activity). The partnership has losses of $150,000 in 2015 and $250,000 in 2016. Kirsten's share of the partnership's losses is $15,000 in 2015 and $25,000 in 2016. How much of the losses from the partnership can Kirsten deduct?

a.$0 in 2015 and $0 in 2016.

b.$15,000 in 2015 and $5,000 in 2016.

c. $15,000 in 2015 and $25,000 in 2016.

d.$20,000 in 2015 and $0 in 2016.

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...