Jose, Who Is Single, Is Allocated $510,000 of Income and $788,000

Multiple Choice

Jose, who is single, is allocated $510,000 of income and $788,000 of deductions from KYX General Partnership resulting in a $278,000 loss allocated to him for 2018. Jose's basis in the partnership is $300,000. How much of this loss can Jose deduct in 2018?

A) 0
B) $250,000
C) $278,000
D) $300,000