In 2014, Jerry acquired an interest in a partnership in which he is not a material participant The partnership was profitable until 2015 Jerry 's basis in the partnership interest at the beginning of 2015was $55,000 In 2015, his share of the partnership loss was $40,000 In 2016 his share of the par...

Basis 55000 2015 loss 40000 suspended under the PAL rules Basis 1500 ...

In 2014, Jerry acquired an interest in a partnership in which he is not a material participant.

Question:

In 2014, Jerry acquired an interest in a in which he is not a material participant. The was profitable until 2015. Jerry's basis in the interest at the beginning of 2015was $55,000. In 2015, his share of the loss was $40,000. In 2016 his share of the income was $18,000. How much can Jerry deduct in 2015 and 2016?
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...