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In the first year, Tom invested $100,000 for a 20% partnership interest in an activity in which he is a material participant. The partnership reported
In the first year, Tom invested $100,000 for a 20% partnership interest in an activity in which he is a material participant. The partnership reported a loss of $400,000 in the first year and $200,000 in the second year. Toms share of the partnerships loss was $80,000 in the first year and $40,000 in the second year. How much of the loss from the partnership can Tom deduct?
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