Reference no: EM132019419

Question - Rosie is a partner in the Cardinal Partnership, which is not publicly traded. Her allocable share of Cardinal's passive ordinary losses from a non-realty activity for the current year is ($100,000). Rosie has a $60,000 adjusted basis (outside basis) for her interest in Cardinal (before deduction of any of the passive losses). Her amount "at risk" under § 465 is $45,000 (before deduction of any of the passive losses). She also has $30,000 of passive income from other sources. How much of the $100,000 passive loss allocated to her can Rosie deduct on her current year's tax return?

a. $30,000

b. $45,000.

c. $60,000.

d. $100,000.

e. None of the above.