Jeffrey is a limited partner in a manufacturing company. At the end of the partnerships tax year, Jeffreys basis in his partnership interest is $50,000 ($10,000) cash investment plus a $40,000 share of non-qualified nonrecourse financing). Jeffreys distributive share of partnership losses for the year is $66,000. Jeffrey has $60,000 of passive income this year from the other activities. How much of the $66,000 partnership loss can be used by Jeffrey in the year of the loss? a. $10,000 b. $50,000 c. $60,000 d. $66,000 e. None of the above

On July 1, 2016, Tyler was admitted to the Owens partnership. Under the terms of his admission, Tyler was given a 5% interest in all profits to be earned after this date, and he is required to continue working for Owens for a two year period, or the is this interest will be forfeited. Assuming Tyler fulfils this two year requirement, he will have a taxable event on July 1, 2018. Unless he makes an election under IRC 83(b). True False

Peggy is a partner in the Crossroads Partnership. For the current year, Peggy had an opening tax basis of $18,000, was allocated a distributive share of the partnerships loss for the year of $15,000 and received a distribution in the amount of $5,000. Assuming that Peggy materially participates in the partnership, she will report a partnership loss of $15,000 and a capital gain of $2,000 on her return for the year. True False