Exercise 10-26 (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 LLC interest is $275,000, and his at-risk amount is $220,000. His share of losses from Solomon for the current year is $357,500, all of which is passive. Tobias owns as another investment that produced $192,500 of passive activity income during the year. (Assume there were no distributions or changes in liabilities during the year.) 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? Deductible Loss Suspended Loss Applicable Provision 704(d) Overall limitation 465 At-risk limitation 469 Passive loss limitation Therefore, Tobias can deduct $ on his return in the current year. Feedback Check My Work Partnership losses flow through to the partners for use on their tax returns. However, the amount and nature of the partner's deductible losses may be limited