In 2020, Peppermint Patty invests $140,500 in a limited partnership that is not a passive activity (only the at-risk rules apply).
 
During 2020, her share of the partnership loss is $85,750. In 2021, her share of the partnership loss is $72,300.

How much can Peppermint Patty deduct on her 2020 tax return?
 
What is the amount of Peppermint Patty's at-risk basis at the end of 2020?
 
What is the amount of Peppermint Patty's suspended losses at the end of 2020?
 
How much can Peppermint Patty deduct on 2021 tax return?
 
What is the amount of Peppermint Patty's at-risk basis at the end of 2021?
 
What is the amount of Peppermint Patty's suspended losses at the end of 2021?

Answer rating: 100% (QA)

The deduction for a limited partnership loss is subject to two limitations the atrisk rules and the passive activity loss rules Since only the atrisk ... View the full answer