Kanga is a 10% partner in Roo, Ltd. His basis in the interest is $60,000 before loss allocations, including his $30,000 share of the partnership's nonrecourse debt (it is not qualified nonrecourse financing). He also is a 10% limited partner in IHOP, in which his basis is $30,000. Kanga is allocated an $80,000 loss from Roo and $20,000 of income from IHOP.

How much of the Roo loss may Kanga deduct?
DEDUCTIBLE   ..........SUSPENDED
LOSS..................................LOSS
Under what Code provisions are the remaining losses suspended?