Susan is a limited partner in the ACME Partnership. Her outside basis is $40,000 before considering the current year items, and includes a $10,000 recourse debt share and a $20,000 nonrecourse debt share. The nonrecourse debt IS treated as qualified nonrecourse financing. ACME reported a $200,000 loss for the year of which Susans 40% share is $80,000. Susan has passive income of $50,000 from another activity (not eligible for the special real estate deduction). She has no business losses for the year from other sources. How much of the $80,000 loss can Susan deduct this year?

$20k

$30k

$40k

$50k

$80k