Sue invested $10,000 in the ABC Limited Partnership and received a 10 percent interest in the partnership. The partnership had $30,000 of qualified nonrecourse debt and $30,000 of debt she is not responsible to repay because she is a limited partner. Sue is allocated a 10 percent share of both types of debt resulting in a tax basis of $16,000 and an at risk amount of $13,000. During the year, ABC LP generated a ($160,000) loss. How much of Sue's loss is disallowed due to her tax basis or at-risk amount?

Multiple Choice

Zero; all of her loss is allowed to be deducted.

$3,000 disallowed because of her at-risk amount.

$4,000 disallowed because of her tax basis.

$6,000 disallowed because of her tax basis.

$6,000 disallowed because of her at-risk amount.