Exercise 10-25 (Algorithmic) (LO. 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 interestis $200,000, and his at-risk amount is 5160,000. His share of losses from Solomon for the current year is $260,000, of which is passive Tobias owns another investment that produced $140,000 of passive activity income during the year. Assume that Tobias is a single taxpayer, there were no distributions or changes in liabilities during the weat 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 2040? How much of the loss is suspended, and what Code provisions cute the suspensions? Deductible Loss Suspended Loss Applicable Provision 1704d) Overall limitation 5 200,000 60,000 52465 At-risk limitation 5 160,000 40,000 5469 Passive loss limitation 140,000 30,000 X Therefore, Tobias can deduct 140,000 on his return in the current year Fado Partnership losses flow through to the partners for use on the tax returns. However, the amount and nature of the partner's deductibles may be limited