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John, a limited partner of Candy Apple, LP, is allocated $22,000 of ordinary business loss from the partnership. Before the loss allocation, his tax basis

John, a limited partner of Candy Apple, LP, is allocated $22,000 of ordinary business loss from the partnership. Before the loss allocation, his tax basis is $17,000 and at-risk amount is $7,000. John also has ordinary business income of $17,000 from Sweet Pea, LP as a general partner and ordinary business income of $6,400 from Red Tomato, as a limited partner. How much of the $22,000 loss from Candy Apple can John deduct currently?

Multiple Choice

  • $6,400.

  • $7,000.

  • $15,600.

  • $22,000.

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