In $2024,$ George invests $$80,000$ for a $20\%$ interest in a partnership in which he is a material participant. The partnership incurs a loss with $$100,000$ being George$$s share. Which of the following statements is incorrect?

Question $32$ options:

Since George has only $$80,000$ of capital at risk, he cannot deduct any more than this amount against his other income.

George's nondeductible loss of $$20,000$ can be carried over and used in future years $($subject to the at$-$risk provisions$).$

If George has taxable income of $$40,000$ from the partnership in $2025$ and there are no other transactions that affect his at$-$risk amount, he can use all of the $$20,000$ loss carried over from $2024.$

George's $$100,000$ loss is nondeductible in $2024$ and $2025$ under the passive activity$$loss provisions.