Question

Larry recently invested $31,000 (tax basis) in purchasing a limited partnership interest. His at-risk amount is also $31,000. In addition, Larry’s share of the limited partnership loss for the year is $2,550, his share of income from a different limited partnership is $1,220, and he has $4,100 of dividend income from the stock he owns. How much of Larry’s $2,550 loss from the limited partnership can he deduct in the current year?

Deductible loss?

Answer #1

The amount invested by Larry and at risk amount both are same of $31,000. Thus, in this case the basis and at risk hurdles will not apply. The amount Larry would be able to deduct in current year is restricted to passive activity income earned by Larry that is $1,220. The remaining loss would be carryover to next year. The deductible loss is therefore $1,220 and remaining $1,330 ($2,550-$1,220) would be passive activity loss which would be carry over to next year.

Thus, Deductible loss is $1,220.

20. Larry recently invested $28,500 (tax basis) in purchasing a
limited partnership interest. His at-risk amount is also $28,500.
In addition, Larry’s share of the limited partnership loss for the
year is $2,425, his share of income from a different limited
partnership is $1,170, and he has $3,850 of dividend income from
the stock he owns. How much of Larry’s $2,425 loss from the limited
partnership can he deduct in the current year?

Larry recently invested $24,844 (tax basis) in purchasing a
limited partnership interest in which he will have no management
rights in the company. His at-risk amount is also $24,844. In
addition, Larry’s share of the limited partnership loss for the
year is $4,997, his share of income from a different limited
partnership was $5,384, and he has $7,904 of dividend income from
the stock he owns. What is the amount of adjusted gross income
these transactions will generate?

Eduardo recently invested $20,000 (tax basis) in purchasing a
limited partnership interest. His at-risk amount is $15,000. In
addition, Eduardo’s share of the limited partnership loss for the
year is $22,000, his share of income from a different limited
partnership was $5,000, and he had $40,000 in wage income and
$10,000 in long-term capital gains.
a. How much of Eduardo’s $22,000 loss can he deduct considering
only the tax basis limitation?
b. How much of the loss from part a....

Rubio recently invested $31,500 (tax basis) in purchasing a
limited partnership interest. His at-risk amount is $23,050. In
addition, Rubio’s share of the limited partnership loss for the
year is $36,950, his share of income from a different limited
partnership is $6,725, and he has $51,500 in wage income and
$15,750 in long-term capital gains. a) How much of Rubio’s $36,950
loss is allowed considering only the tax-basis loss limitations? b)
How much of the loss from part (a) is...

Rubio recently invested $20,000 (tax basis) in purchasing a
limited partnership interest. His at-risk amount is $15,000. In
addition, Rubio’s share of the limited partnership loss for the
year is $22,000, his share of income from a different limited
partnership is $5,000, and he has $40,000 in wage income and
$10,000 in long-term capital gains.
How much of Rubio’s $22,000 loss is allowed considering only the
tax-basis loss limitations?
How much of the loss from part (a) is allowed under...

1. Rubio recently invested $20,000 (tax basis) in purchasing a
limited partnership interest. His at-risk amount is $15,000. In
addition, Rubio’s share of the limited partnership loss for the
year is $22,000, his share of income from a different limited
partnership was $6,000, and he had $40,000 in wage income and
$10,000 in long-term capital gains. How much of Rubio’s $22,000
loss from the limited partnership can he deduct in the current year
considering all limitations?
2. Anwar owns a...

Rubio recently invested $20,000 (tax basis) in purchasing a
limited partnership interest. His at-risk amount is $15,000. In
addition, Rubio’s share of the limited partnership loss for the
year is $22,000, his share of income from a different limited
partnership is $5,000, and he has $40,000 in wage income and
$10,000 in long-term capital gains.
a. How much of Rubio’s $22,000 loss is allowed
considering only the tax-basis loss limitations?
b. How much of the loss from part (a) is...

Alfonso began the year with a tax basis in his partnership interest
of $30,000. His share of partnership debt at the beginning and end
of the year consists of $4,000 of recourse debt and $6,000 of
nonrecourse debt. During the year, he was allocated $40,000 of
partnership ordinary business loss. Alfonso does not materially
participate in this partnership and he has $1,000 of passive income
from other sources.
a. How much of Alfonso’s loss limited by his tax basis?
b....

Rhonda owns an interest in a limited partnership (a passive
activity), and her share of the partnership's loss is $26,000. Her
tax basis in the partnership is $27,000, and her at-risk amount is
$21,000. In addition to the loss from the partnership, Rhonda has
$60,000 of income from her salary, $2,000 of interest from
corporate bonds, and $29,000 of income from another limited
partnership (a passive activity). What amount of the partnership
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Jack’s basis in JTD Partnership interest is $200,000 at the
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$14,000 long-term capital gain. In addition, he received a $20,000
cash distribution during the year; and, his share of partnership
debt increased by $10,000. What is Jack’s ending basis in his
partnership interest?

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