How much of the losses can pearl deduct


In 2007, Pearl invests $80,000 for a 10% partnership interest in an activity in which she is a material participant. The partnership reports losses of $500,000 in 2007 and $450,000 in 2008. Pearl's share of the partnership's losses is $50,000 in 2007 and $45,000 in 2008. How much of the losses can Pearl deduct?

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Accounting Basics: How much of the losses can pearl deduct
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