Nelson is a limited partner in a vinyl shop. At the end of the partnership's tax year, Nelson's basis in the partnership interest is $60,000 ($25,000 cash investment plus a $35,000 share of nonqualified nonrecourse financing). Nelson's distributive share of partnership losses for the tax year is $55,000. Nelson has $52,000 of passive income this year from other activities. How much of the $55,000 partnership loss can be used by Nelson in the year of the loss?