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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

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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 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 and at-risk limitations, how much (additional) loss is limited by the passive activity loss limitation? (in other words, after considering the general tax basis and at-risk loss limitations in the prior two questions, how much more of the allocated loss may Victor not recognize because of passive activity loss limitation?) $8,000 $0 $4,000 $10,000

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