How much can emily deduct
In 2010, emily invests $100,000 in a limted partership that is not a passive activity. During 2010, her share of partnership loss is $70,000. In 2011, her share of the partnership loss is $50,000. How much can emily deduct in 2010 and 2011?
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Net income is $50,000, and the partnership agreement states that the partners share profits and losses on the basis of their capital balances.
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