Question

Partner A is a limited partner in the ABC Partnership. Partner A has a 40% ownership in all profits and losses of the partnership. Partner A's share of ABC's loss is ($65,000) for the year. Partner A's outside basis in ABC is $50,000 (which includes A share of $15,000 of nonqualified nonrecourse debt). Partner A has passive income from another investment of $25,000 for the year. What amount of ABC's loss can Partner A deduct in the year? What is the amount of loss carry forward at each of the hurdles?

Answer 1

Loss suspended or carry forward at each of thr hurdle
Outside basis	$50,000
Less: A's share of nonqualified non recourse debt	($15,000)
At risk's basis	$35,000
Share of loss from Partnership	($65,000)
Loss suspended at risk rules	($30,000)
Passive income from another investment	$25,000
Loss carryforward to future period	($5,000)
Amount of loss Partner A can deduct
At risk's basis	$35,000
Passive income from another investment	$25,000
Amount of loss Partner A can deduct	$60,000