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Victor is allocated a ($20.000) ordinary business loss from Mangrove, a limited partnership in which Victor is not a material participant. His basis in the
Victor is allocated a ($20.000) ordinary business loss from Mangrove, a limited partnership in which Victor is not a material participant. His basis in the partnership interest after considering any changes in debt allocations was $15,000. Victor's share of Mangrove's debt is as follows: recourse debt $2,000, and nonrecourse debt $3,000. Victor also received $4,000 of passive income from another investment. Not counting the amount of loss limited by the general tax basis limitation, how much (additional) loss is limited by the at-risk basis loss limitation? (in other words, after considering the general tax basis loss limitation in the prior question, how much more of the allocated loss may Victor not recognize because of at-risk basis loss limitation?) $5,000 $3,000 $0 $7.000
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