Question: Muhammad is a 50% partner in M&M LLC, which does not invest in real estate. On January 11, Muhammad's adjusted basis for his LLC interest

Muhammad is a 50% partner in M&M LLC, which does not invest in real estate. On January 11, Muhammad's adjusted basis for his LLC interest is $451,000, and his at-risk amount is $402,000. His share of losses from M&M for the current year is $788,000, all of which is passive. Muhammad owns another investment that produced $362,000 of passive income during the year. (Assume there were no distributions or changes in liabilities during the year.) How much of M&M's losses may Muhammad deduct on his Form 1040

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