Multiple Choice
John, a limited partner of Candy Apple, LP, is allocated $30,000 of ordinary business loss from the partnership. Before the loss allocation, his tax basis is $20,000 and at-risk amount is $10,000. John also has ordinary business income of $20,000 from Sweet Pea, LP as a general partner and ordinary business income of $5,000 from Red Tomato, as a limited partner. How much of the $30,000 loss from Candy Apple can John deduct currently?
A) $5,000.
B) $10,000.
C) $25,000.
D) $30,000.
Correct Answer:

Verified
Correct Answer:
Verified
Q5: Does adjusting a partner's basis for tax-exempt
Q47: What form does a partnership use when
Q81: How does a partnership make a tax
Q82: Which of the following statements exemplifies the
Q83: Zinc, LP was formed on August 1,
Q85: Erica and Brett decide to form their
Q87: Which of the following statements regarding the
Q88: This year, HPLC, LLC was formed by
Q90: On March 15, 20X9, Troy, Peter, and
Q106: Partners adjust their outside basis by adding