John, a limited partner of Candy Apple, LP, is allocated $32,000 of ordinary business loss from the partnership

Accounting Jan 16, 2021

John, a limited partner of Candy Apple, LP, is allocated $32,000 of ordinary business loss from the partnership. Before the loss allocation, his tax basis is $22,000 and at-risk amount is $12,000. John also has ordinary business income of $22,000 from Sweet Pea, LP as a general partner and ordinary business income of $8,200 from Red Tomato, as a limited partner. How much of the $32,000 loss from Candy Apple can John deduct currently?

Multiple Choice

$8,200.
$12,000.
$23,800.
$32,000.

Expert Solution

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