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In January 2011, Juacinto purchased an interest in a nonpublicly traded limited partnership that will generate a $10,000 passive loss for the current tax year.

In January 2011, Juacinto purchased an interest in a nonpublicly traded limited partnership that will generate a $10,000 passive loss for the current tax year. He also owns an interest in a publicly traded limited partnership that will generate passive income of $6,000 for the current tax year. How much of this passive loss, if any, can Juacinto deduct during the current tax year?

A)

$4,000

B)

$0

C)

$6,000

D)

$10,000

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