Problem 6-18 (LO. 6)
In 2021, Fred invested $50,000 in a general partnership. Fred's interest is not considered to be a passive activity. If his share of the
partnership losses is $35,000 in 2021 and $25,000 in 2022, how much can he deduct in each year?
Fred can deduct $\boxed{50000} in 2021 and $\boxed{15,000} in 2022.
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The at-risk rules limit the deductibility of losses from business and income-producing activities.