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Problem $20-73($LO $20-6)($Algo$)$

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Alfonso began the year with a tax basis in his partnership interest of $$16,000.$ His share of partnership liabilities at the beginning and end of the year consists of $$3,000$ of recourse liabilities and $$7,000$ of nonrecourse liabilities. During the year, he was allocated $$31,000$ of partnership ordinary business loss. Alfonso does not materially participate in this partnership, and he has $$2,000$ of passive income from other sources.

Problem $20-73$ Part b $($Algo$)$

b$.$ How much of Alfonso's loss is limited by his at$-$risk amount?

Loss limited by his at$-$risk amount