Case Study Question

Ron's investment in his XYZ partnership interest on December $31,2023,$ was $$12,000.$ As the result of a serious downturn in business, the partnership calculates Ron's share of the partnership's losses in $2024$ will be $$14,500.$ How much of this projected $2024$ loss, if any, may Ron deduct on his income tax return for $2024?$

A$)$

$$12,000$

B$)$

$$0$

C$)$

$$2,500$

D$)$

$$14,000$