Explain the ordinary business loss


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?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Explain the ordinary business loss
Reference No:- TGS0679175

Expected delivery within 24 Hours