Wolverine owns 40% of 496, Ltd. His basis in the partnership interest is $100,000 before loss allocations, including his $40,000 share of partnership debt. He owns 20% of Avengers LLC, and works there full-time (basis = $16,000). He is a 16% limited partner in Justice League LP (basis = $50,000). His 496 loss is $118,000, his Avengers income is $72,000, and his Justice League income is $29,000. (You have the information to determine which income is passive and non-passive.)

How much of 496s loss is deductible?

DEDUCTIBLE SUSPENDED CODE

LOSS LOSS SECTION