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In 2018, Arnold invests $80,000 for a 20% interest in a partnership in which he is a material participant. The partnership in
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Answer #1

1. Arnold’s $100,000 loss is nondeductible in 2018 and 2019 as per the passive activity loss provisions.

2. Amount of Suspended loss = Positive Income - Loss

Amount of Suspended loss = 30000 - 50000

Amount of Suspended loss = $20000

3. Carl's AGI = $245000 ($200000 + 45000)

He is not allowed to offset the net passive loss against active or portfolio income.

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