McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 86

Larry recently invested $20,000 (tax basis) in purchasing a limited partnership interest.His at-risk amount is also $20,000.In addition, Larry's share of the limited partnership loss for the year is $2,000, his share of income from a different limited partnership was $1,000, and he had $3,000 of dividend income from the stock he owns.How much of Larry's $2,000 loss from the limited partnership can he deduct in the current year?