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Scenario $1$: The Partnership Puzzle

Thomas is a $25\%$ partner in a partnership that invests in real estate and other ventures. Here's the partnership picture:

The partnership uses nonrecourse debt to finance some properties.

It generated a $$120,000$ net loss for the year. Thomas's share is $$30,000.$

Thomas's initial basis in the partnership was $$60,000.$

Thomas received a $$10,000$ cash distribution from the partnership.

Thomas also has other income:

Wages: $$90,000$

Interest and Dividend Income: $$2,000$

Itemized Deductions: $$24,000$

Allowable deduction for self$-$employment tax: None

Questions

How much of the partnership loss can Thomas deduct considering his basis, the at$-$risk limitations$,$ and passive activity loss rules?

How does the distribution affect his basis?

Calculate AGI, Taxable Income, and Total Tax Liability