Preben is a 42% partner in Ferequi LLC, which does not invest in real estate. On January 9, Preben's adjusted basis for his LLC interest is $66,000, and his at-risk amount is $65,000. His share of losses from Ferequi for the current year is $103,000, all of which is passive. Preben owns as another investment that produced $57,000 of passive income during the year. (Assume there were no distributions or changes in liabilities during the year.) How much of Ferequi's losses may Preben deduct on his Form 1040?

How much of the loss is suspended and what Code provisions cause the suspensions?

Applicable Provision Deductible Loss Suspended Loss

704(d) Overall limitation $______ $______

465 At-risk limitation $_______ $______

469 Passive loss limitation $_______ $_______

Therefore, Preben can deduct $________ on his return in the current year.