Question

Several years ago, Snoopy acquired a passive activity. Until 2017, the activity was profitable. Snoopy’s at-risk...

Several years ago, Snoopy acquired a passive activity. Until 2017, the activity was profitable. Snoopy’s at-risk amount at the beginning of 2017 was $238,500. The activity produced losses of ($100,000) in 2017, ($80,000) in 2018, and ($90,000) in 2019. During the same period, no passive activity income was recognized.

How much of these losses are suspended under the at-risk rules at the end of 2019?

How much of these losses are suspended under the passive activity loss rules at the end of 2019?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Losses are suspended under the at-risk rules at the end of 2019 = $31,500 ($238,500 of the losses are reclassified as passive and suspended because no passive income was recognized during the period. $238,500 losses - $270,000 ($100,000 + $80,000 + $90,000) reclassified as passive = $31,500 losses suspended under the at-risk rules.

Losses are suspended under the passive activity loss rules at the end of 2019 = $238,500 of the losses are reclassified as passive and suspended because no passive income was recognized during the period

If you like the answer, kindly give a ?.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Molly acquired a 30% interest in BG LLP in 2017 for $48,000.  At the start of 2018,...
Molly acquired a 30% interest in BG LLP in 2017 for $48,000.  At the start of 2018, Molly's adjusted basis and her at-risk amount in her BG interest is $20,000. In 2018, BG incur a loss of $90,000 (Molly's share is $27,000).  BG makes no distributions to any partners. In 2019, BG earns income of $16,000. Molly contributes an additional $5,000 to BG in 2019.  Molly has no other passive income in either year. Using this information, answer the following: a. What is...
Wes’s at-risk amount in a passive activity is $25,000 at the beginning of the current year....
Wes’s at-risk amount in a passive activity is $25,000 at the beginning of the current year. His current loss from the activity is $35,000 and he has no passive activity income. At the end of the current year, which of the following statements is incorrect? a. Wes has a loss of $25,000 suspended under the passive loss rules. b. Wes has an at-risk amount in the activity of $0. c. Wes has a loss of $10,000 suspended under the at-risk...
Billy Bob is at risk for $10,000 in Partnership A and $22,000 in Partnership B on...
Billy Bob is at risk for $10,000 in Partnership A and $22,000 in Partnership B on January 1, 2017. Both partnerships are passive activities to Billy Bob. Billy Bob’s share of net income from Partnership A during 2017 was $8,000. His share of losses from Partnership B was $12,000. What are the tax consequences to Billy Bob in 2017? How much is he as risk for each activity on January 1, 2018? Does he have any loss carryovers under the...
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years...
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $61,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $32,500. In year 1, Beau Geste incurs a loss of $194,500 and does not make any distributions to the partners. In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $67,000. This includes $17,600 of passive income from other passive activities. In...
Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017, Skybox...
Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017, Skybox sold inventory costing $241,500 to Parkette for $322,000. A total of 20 percent of this inventory was not sold to outsiders until 2018. During 2018, Skybox sold inventory costing $146,000 to Parkette for $182,500. A total of 27 percent of this inventory was not sold to outsiders until 2019. In 2018, Parkette reported cost of goods sold of $620,000 while Skybox reported $232,500. What...
Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017, Skybox...
Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017, Skybox sold inventory costing $149,600 to Parkette for $187,000. A total of 15 percent of this inventory was not sold to outsiders until 2018. During 2018, Skybox sold inventory costing $208,250 to Parkette for $245,000. A total of 30 percent of this inventory was not sold to outsiders until 2019. In 2018, Parkette reported cost of goods sold of $582,500 while Skybox reported $352,500. What...
Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017, Skybox...
Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017, Skybox sold inventory costing $210,600 to Parkette for $270,000. A total of 20 percent of this inventory was not sold to outsiders until 2018. During 2018, Skybox sold inventory costing $163,510 to Parkette for $197,000. A total of 30 percent of this inventory was not sold to outsiders until 2019. In 2018, Parkette reported cost of goods sold of $537,500 while Skybox reported $437,500. What...
2. A number of years ago, Kay acquired an interest in a partnership in which she...
2. A number of years ago, Kay acquired an interest in a partnership in which she is not a material participant. Kay’s basis in her partnership interest at the beginning of 2-17 is $40,000. Kay’s share of partnership loss is $35,000 in 2017, while her share of the partnership income is $15,000 in 2018. How much may Kay deduct in 2017 and 2018, assuming that she owns no other passive income.
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years...
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $63,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $22,500. In year 1, Beau Geste incurs a loss of $188,500 and does not make any distributions to the partners. In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $64,400. This includes $14,400 of passive income from other passive activities. In...
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years...
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $65,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $31,000. In year 1, Beau Geste incurs a loss of $227,100 and does not make any distributions to the partners. In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $62,000. This includes $17,300 of passive income from other passive activities. In...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT