Question

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 year 2, Beau Geste earns income of $31,400. In addition, Molly contributes an additional $21,830 to Beau Geste during year 2. Molly's AGI in year 2 is $72,100 (excluding any income or loss from Beau Geste). This amount includes $13,720 in income from her other passive investments.

a. Based on the above information, complete the following table:

	At risk amount
	Initial year 1 amount	?
	Allowed loss	?
	End of Year 1 at risk amount	0
	Contribution for Year 2	?
	BG Income	?
	Allowed loss	?
	end of year 2 risk amount	?
Year	Total Loss	At risk allowed	At risk disallowed
1	?	?	?
2	?	?	?
Year	At risk allowed	Passive activity loss allowed	Passive activity loss disallowed
1	?	?	?
2	?	?	?
	At end of year 2
	Cumulative total passive suspended losses ?
	Year 2 AGI
	AGI before BG	?
	Year 2 passive income from BG	?
	Year 2 allowed passive losses	?
	Year 2 AGI	?
If any doubt please comment

Answer 1