1. Ron is a 20% limited partner in HTP Ltd. His basis in the interest on January 1, 2019 is $40,000 (including his $15,000 share of the partnerships nonrecourse debt). Ron is also a limited partner in P&Q. Ron is allocated the appropriate share of the following HTPs Schedule K transactions for 2019:

• Ordinary loss: $200,000
• Long-term capital gain: $40,000

In addition:

• At the end of the year, Ron took a $24,000 cash distribution from HTP Ltd.
• Ron received $5,000 of income from P&Q

1. How much of the loss from HTP, Ltd. may Ron deduct for the 2019 tax year? Under what IRC provisions (or for what purpose) are the remaining losses suspended? Please show your work, including the computation of Rons basis.