In 2018, Kirsten invested $20,000 for a 10% partnership interest (not a passive activity). The partnership has

Question:

In 2018, Kirsten invested $20,000 for a 10% partnership interest (not a passive activity). The partnership has losses of $150,000 in 2018 and $250,000 in 2019. Kirsten’s share of the partnership’s losses is $15,000 in 2018 and $25,000 in 2019. How much of the losses from the partnership can Kirsten deduct?

a. $0 in 2018 and $0 in 2019.

b. $15,000 in 2018 and $5,000 in 2019.

c. $15,000 in 2018 and $25,000 in 2019.

d. $20,000 in 2018 and $0 in 2019.

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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