Question: In 2 0 2 4 , Liam invested $ 1 0 0 , 0 0 0 for a 2 5 % interest in a partnership

In 2024, Liam invested $100,000 for a 25% interest in a partnership involved in an activity in which he is a material participant. The partnership reported losses of $340,000 in 2024 and $180,000 in 2025 with Liam's share being $85,000 in 2024 and $45,000 in 2025. How much of the losses can Liam deduct?
a. $0 in 2024 and $0 in 2025.
b. $85,000 in 2024 and $15,000 in 2025.
c. $85,000 in 2024 and $45,000 in 2025.
d. $85,000 in 2024 and $0 in 2025.

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