Choice "d" is correct. A partner's tax deduction for his or her distributive
share of partnership losses is limited to the partner's adjusted basis in the
partnership, which is increased by any partnership liabilities that he or she is
personally liable for (called the "at-risk" provision). Any unused loss can be
carried forward and used in a future year when basis becomes available;
therefore, the at-risk limitation does not limit a partner's net operating loss
carryover.
Choices "a", "b", and "c" are incorrect, based on the above discussion.
