Question: Note: use the following fact pattern for the next three questions. Victor is allocated a ($20,000) ordinary business loss from Mangrove, a limited partnership in
Note: use the following fact pattern for the next three questions. Victor is allocated a ($20,000) ordinary business loss from Mangrove, a limited partnership in which Victor is not a material participant. His basis in the partnership interest after considering any changes in debt allocations was $15,000. Victor's share of Mangrove's debt is as follows: recourse debt $2,000, and nonrecourse debt $3,000. Victor also received $4,000 of passive income from another investment. How much of Victor's loss is limited by the general tax basis loss limitation? (in other words, how much of the allocated loss may Victor not recognize because of general tax basis loss limitation?) $5.000 $10,000 $20,000 $0
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