The TimpRiders LP has operated a motorcycle dealership for a number of years. Amir is the limited partner, Francesca is the general partner, and they share capital and profits equally. Francesca works full time managing the partnership. Both the partnership and the partners report on a calendar-year basis. At the start of the current year, Amir and Francesca had basis of $13,600 and $5,600, respectively, and the partnership did not have any liabilities. During the current year, the partnership reported the following results from operations:

Net sales	$ 717,000
Cost of goods sold	539,000
Operating expenses	202,000
Short-term capital loss	5,500
Tax-exempt interest	9,000
1231 gain	13,000

On the last day of the year, the partnership distributed $5,600 each to Amir and Francesca.

Required:

What outside basis do Amir and Francesca have in their partnership interests at the end of the year?

How much of their losses are currently not deductible by Amir and Francesca because of the tax-basis limitation?

To what extent does the passive activity loss limitation apply in restricting their deductible losses for the year?