PLEASE SHOW HOW YOU ARRIVE AT YOUR ANSWER. THANKS! John, a limited partner of Ca

Question

PLEASE SHOW HOW YOU ARRIVE AT YOUR ANSWER. THANKS!

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?

$5,000

$10,000

$25,000

$30,000

$5,000

$10,000

$25,000

$30,000

Explanation / Answer

$5000

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