Ellen purchases a 20% partnership interest but does not participate in the partnerships business. She owns no

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Ellen purchases a 20% partnership interest but does not participate in the partnership’s business. She owns no other passive investments. Her Section 704(d) basis in the partnership = $80,000. Of this amount, $70,000 is at risk. Ellen’s distributive share of the partnership’s loss for the current year =$60,000.

What Ellen can deduct?

Posted Date: May 02, 2024 03:25 AM

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Ellen purchases a 20% partnership interest but does not participate in the partnerships business. She owns no

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Expert Answer:

In this scenario Ellen can deduct a maximum of 70000 from her taxable income ... View the full answer

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