Problem $14-18($Algorithmic$)($LO$.6)$

Tobias is a $50\%$ partner in Solomon LLC$,$ which does not invest in real estate. On January $1,$ Tobias's adjusted basis for his LLC interest is $$236,000,$ and his at$-$risk amount is $$188,800.$ His share of losses from Solomon for the current year is $$306,800,$ all of which is passive. Tobias owns another investment that produced $$165,200$ of passive activity income during the year. $($Assume that Tobias is a single taxpayer, there were no distributions or changes in liabilities during the year, and the Solomon loss is Tobias's only loss for the year from any activity.$)$

How much of Solomon's losses may Tobias deduct on his Form $1040?$ How much of the loss is suspended, and what Code provisions cause the suspensions?

Applicable Provision

Overall limitation

At$-$risk limitation

Passive loss limitation $

Deductible Loss

$

$$

$

Suspended Loss

$

$

$

Therefore, Tobias can deduct $ on his return in the current year.