On January 1, X9, Gerald received his 50 percent profits and capital interest in High Air, LLC, in exchange for $2,900 in cash and real property with a $3,900 tax basis secured by a $2,900 nonrecourse mortgage. High Air reported a $15,900 loss for its X9 calendar year. How much loss can Gerald deduct, and how much loss must he suspend if he only applies the tax basis loss limitation?