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Tom owns 20% of a ptrsp in which he materially participates. Assume Tom's basis in a ptrsp is $6,300 at the beginning of the year.

Tom owns 20% of a ptrsp in which he materially participates. Assume Tom's basis in a ptrsp is $6,300 at the beginning of the year. During the year the ptrsp incurs $50,000 in losses and its liabilities increase by $15,000. How much can Tom deduct? Assume Tom had $1,000 of passive income.

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