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Mark has an outside basis in his LLC interest of $40,000. This outside basis includes his share of liabilities ($3,000 recourse and $7,000...

Mark has an outside basis in his LLC interest of $40,000. This outside basis includes his

share of liabilities ($3,000 recourse and $7,000 nonrecourse. His K-1 for the year shows a

$50,000 ordinary loss. He is not actively involved with managing the business. He has other

similar interests in which he does not materially participate with flow through income of

$15,000. How much of the loss may Mark deduct in the current year after the at risk loss

limitation?

A. $40,000

B. $50,000

C. $15,000

D. $33,000

E. None of the above

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