A)In 2017, Kirk invested $50,000 in a general partnership in which he materially participates

(passive activity loss limits do not apply).

The business incurs a first-year loss in 2017, and Kirk's share of the business' deductible

loss was $30,000.

What amount can Kirk deduct in 2017?

B)Same facts as previous question.

Kirk's share of the business' deductible loss for 2018 was $30,000.

What amount can Kirk deduct in 2018?

C)In 2019, Kirk's share of the business' income is $5,000 and Kirk invests an additional

$7,000 in the partnership.

What amount, if any, can Kirk deduct in 2019?

D)In 2020, Kirk withdraws $5,000 from the partnership.

Which of the following is most accurate?

-Kirk's at-risk amount increases by $5,000

-Kirk must recapture $3,000 of previously allowed losses as income

-Kirk must recapture $5,000 of previously allowed losses as income

-Kirk cannot withdraw the funds because it would reduce his at-risk amount below $0