Ferris Owns an Interest In,but Does Not Materially Participate In,an

Multiple Choice

Ferris owns an interest in,but does not materially participate in,an activity.He has $30,000 at-risk.The business produced a loss in the current year and Ferris's share of the loss is $45,000.Assuming Ferris has no passive income,how much of the $45,000 loss will be deductible by Ferris?

A) $0.
B) $45,000.
C) $30,000.
D) Cannot be determined.