In the current year, your client invested $50,000 for a 20% interest in a partnership in which she was a material participant during the year. The partnership incurred a loss, and Roberta's share of the loss was $75,000. Which of the following statements is false?- Since your client has only $50,000 of capital at risk, she cannot deduct more than $50,000 against her other income.- Your client's nondeductible loss of $25,000 can be carried over and used when the at-risk provisions allow.- If your client has taxable income of $45,000 from the partnership in the following year and no other transactions that affect her at-risk amount, she can use all of the $25,000 loss carried over from the current year.- Her $75,000 loss is nondeductible in the current year under the passive loss provisions.
