The Gilpin partnership has an operating loss of $400,000 for the current year. Hawkins is a general
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The Gilpin partnership has an operating loss of $400,000 for the current year. Hawkins is a general partner and owns 40% interest in the partnership. At the beginning of the year, Hawkins' adjusted basis in the partnership interest is $30,000. During the year, the partnership borrows $120,000 with a recourse note. How much of the partnership loss can Hawkins deduct on his current-year income tax return?
a. $-0-
b. $30,000
c. $70,000
d. $78,000
e. $200,000
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0071051606
8th Canadian Edition
Authors: Stephen A. Ross, Randolph W. Westerfield
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