Before allocations for the current year, Marvin's basis in the MR LLC, in which Marvin is not an active member, is $50,000. His basis includes $10,000 of debt that he guaranteed, and $20,000 of nonrecourse debt that is not qualified nonrecourse financing. Marvin has passive income from other sources of $40,000. The LLC allocates a loss of $60,000 to Marvin. After application of the loss limitation rules, Marvin can deduct $40,000. (True or False)