In 2013, Jerry acquired an interest in a partnership in which he is not a material participant The partnership was profitable until 2014 Jerry 's basis in the partnership interest at the beginning of 2014was $55,000 In 2014, his share of the partnership loss was $40,000 In 2015 his share of the par...

Basis 55000 2014 loss 40000 suspended under the PAL rules Basis 1500 ...

In 2013, Jerry acquired an interest in a partnership in which he is not a material participant.

Question:

In 2013, Jerry acquired an interest in a in which he is not a material participant. The was profitable until 2014. Jerry's basis in the interest at the beginning of 2014was $55,000. In 2014, his share of the loss was $40,000. In 2015 his share of the income was $18,000. How much can Jerry deduct in 2014 and 2015?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...