Exercise $10-25($Algorithmic$)($L$0.12)$

Tobias is a $50\%$ partner in Solomon LLC$,$ which does not invest in real estate. On January $1,$ Tobias's adjusted basis for his LLC interest is

$$218,000,$ and his at$-$risk amount is $$174,400.$ His share of losses from Solomon for the current year is $$283,400,$ all of which is

Tobias owns another investment that produced $$152,600$ of passive activity income during the year. $($Assume that Tobias is a single

taxpayer, there were no distributions or changes in liabilities during the year, and the Solomon loss is Tobias's only loss for the year from

any activity.$)$

How much of Solomon's losses may Tobias deduct on his Form $1040?$ How much of the loss is suspended, and what Code provisions cause

the suspensions?

Applicable Provision

$704($d$)$

Overall limitation

At$-$risk limitation

Passive loss limitation

Deductible Loss

$

$

$

Suspended Loss

$

$

$

Therefore, Tobias can deduct $

on his return in the current year.