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Graces sole source of income is from a restaurant that she owns and operates as a proprietorship. Any state income tax Grace pays on the

Graces sole source of income is from a restaurant that she owns and operates as a proprietorship. Any state income tax Grace pays on the business net income must be deducted as a business expense rather than as an itemized deduction.

true or false

Jack owns a 10% interest in a partnership (not real estate) in which his at-risk amount is $42,000 at the beginning of the year. During the year, the partnership borrows $80,000 on a nonrecourse note and incurs a loss of $60,000 from operations. Jacks at-risk amount at the end of the year is $44,000.

true or false

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