18. Tim purchased a limited partnership interest in 2018. This activity is considered passive with respect to Tim. The partnership experienced a loss in 2023, of which Tims allocable portion is ($48,000). Tims basis in his partnership interest is $43,000, and his amount at-risk is $32,000. During 2023, Tims AGI (before considering any deductible portion of this partnership loss) is $120,000, which includes $85,000 of salary income, $15,000 of dividend income, and $20,000 of income from another partnership (which is also considered passive with respect to Tim). After considering all applicable limits, how much of the loss may Tim deduct on his 2023 income tax return?

a. $48,000

b. $35,000

c. $32,000

d. $20,000

I know the answer is $20,000, I just don't know the explanation. Thank you!