Lynn has involved herself in several different businesses by investing cash, but she tends not to be involved beyond the cash investment. She normally invests as a limited partner and does not want to expose her personal assets to possible creditor claims arising from these investments.

One company she has invested in is North Coast Development, a limited partnership engaged in different activities in the Northern Ohio area near the Lake Erie shoreline. At the beginning of the year, she had a basis in her partnership interest in North Coast Development of $400,000. One endeavor of the company has been to research the placing of giant wind turbines into Lake Erie. Lynn invested $100,000 into the partnership to go to this experimental activity to see if this could be developed into a profitable endeavor. The partnership also had to borrow money to finance this expensive research, and Lynns share of the partnership loan, which was a nonrecourse loan, is $100,000.

As the research and development of the possible Lake Erie wind turbines is still in development phase, this activity lost money this year, and Lynns share of the loss was $250,000. North Coast Development is also attempting to establish a recording and record label business to be in Cleveland, Ohio, to put out music under the label CleveTown. Lynn invested $200,000 cash into the partnership for this particular endeavor, and her share of income from this activity for the year was $120,000, giving her an overall loss from the partnership of $130,000 (when combined with her loss of $250,000 on the wind turbines). How much of these losses can Lynn pass through and actually deduct on her individual income tax return?