Answer:
Option "B" is the correct answer to the following statement.
Explanation:
According to excess business loss rules, $500,000 is deductible to joint return and $250,000 deductible for a single taxpayer or single return.
In this situation, Max is a single taxpayer so, he would receive a maximum $250,000 loss deduction under excess business loss rules.
Therefore, Max's maximum deductible amount is $250,000.
