Larry recently invested $35,400 (tax basis) in purchasing a limited partnership interest in which he will...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Larry recently invested $35,400 (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 $35,400. In addition, Larry's share of the limited partnership loss for the year is $2,400, his share of income from a different limited partnership was $1,100, and he has $3,800 of dividend income from the stock he owns. How much of Larry's $2,400 loss from the limited partnership can he deduct in the current year? Deductible Lss Rubio recently invested $19,450 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is $14,000. In addition, Rubio's share of the limited partnership loss for the year is $23,700, his share of income from a different limited partnership is $7,550, and he has $40,200 in wage income and $16,200 in long-term capital gains. (Input the amount as positive value.) a. How much of Rubio's $23,700 loss is allowed considering only the tax-basis loss limitations? Allowable loss b. How much of the loss from part (a) is allowed under the at-risk limitations? Allowable loss c. How much of Rubio's $23,700 loss from the limited partnership can he deduct in the current year considering all limitations? Current year deduction Larry recently invested $35,400 (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 $35,400. In addition, Larry's share of the limited partnership loss for the year is $2,400, his share of income from a different limited partnership was $1,100, and he has $3,800 of dividend income from the stock he owns. How much of Larry's $2,400 loss from the limited partnership can he deduct in the current year? Deductible Lss Rubio recently invested $19,450 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is $14,000. In addition, Rubio's share of the limited partnership loss for the year is $23,700, his share of income from a different limited partnership is $7,550, and he has $40,200 in wage income and $16,200 in long-term capital gains. (Input the amount as positive value.) a. How much of Rubio's $23,700 loss is allowed considering only the tax-basis loss limitations? Allowable loss b. How much of the loss from part (a) is allowed under the at-risk limitations? Allowable loss c. How much of Rubio's $23,700 loss from the limited partnership can he deduct in the current year considering all limitations? Current year deduction
Expert Answer:
Answer rating: 100% (QA)
Part 1 Deductable loss 1100 As larry invest 35400 and her at risk also 35400 Therefore the basis and ... View the full answer
Related Book For
Income Tax Fundamentals 2020
ISBN: 9780357108239
38th edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill
Posted Date:
Students also viewed these accounting questions
-
Rubio recently invested $15,000 in purchasing a limited partnership interest His share of the debt in the partnership is $5,000, but he is not personally responsible for paying the debt in the event...
-
Larry recently invested $20,000 (tax basis) in purchasing a limited partnership interest. His at-risk amount is also $20,000. In addition, Larry's share of the limited partnership loss for the year...
-
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...
-
Please watch the video link and answer the following questions. https://youtu.be/VtvjbmoDx-I On January 22,1984, Apple produced one of the most famous Super Bowl ads of all time. Directed by Ridley...
-
For the data in Exercise 2, In Exercise 2 The percentages of people who historically apply for the Silver, Gold, and Platinum cards are 60%, 30%, and 10%, respectively. In a recent sample of...
-
A race Jean and Juan run a one-lap race on a circular track. Their angular positions on the track during the race are given by the functions (t) and (t), respectively, where 0 t 4 and t is measured...
-
\(\left(12^{5} ight)^{3}\) Simplify the expression.
-
Presented below is information related to Dickinson Company for 2012. Retained earnings balance, January 1, 2012 $ 980,000 Sales revenue 25,000,000 Cost of goods sold 16,000,000 Interest revenue...
-
. Question 3: Life Insurance (15 points) Consider the following life table that Peter of age 20 belongs to. Age Number of Persons Alive 20 20,000 40 16,000 60 10,000 80 2,000 100 Assumption a. The...
-
The adjusted trial balance of Gibson Company for the year ended December 31, 2019, is as follows: Instructions Prepare a multiple-step income statement, retained earnings statement, and a classified...
-
There are a continuum types of people in the society, whose health status can be represented by, which lies in between 0 and 1. x follows uniform distribution U[0, 1]. A larger value of x indicates...
-
Problem 1 1. What is the total charge of 75.0 kg of electrons? 4 2. (a) How many electrons would have to be removed from a penny to leave it with a charge of +1.0x10-7 C? (b) To what fraction of the...
-
Ratio spreads are like the bull and bear call spreads you know except that the number of call bought and sold at the different strikes are different. You create two ratio call spreads. The first...
-
Immigration Time-Out by Patrick J Buchanon, choose 3 logical fallacies and Rewrite each statement in the form of a logical argument.
-
Although Fisher's interest rate theory believes that the determination of interest rate level is a function of market forces, governments and central bank in all countries implement strict regulation...
-
1) Hudsucker Inc. uses the perpetual inventory system. There were 21 units of the item on hand at the end of the month. The following units of an item were available for sale during the month: Jan 1...
-
. Using the following data table to answer questions 5-6. We have built a passive equity portfolio that is tracking the Shanghai Composite (SHCOMP INDEX). Examining the historical the historical...
-
A new car sold for $31,000. If the vehicle loses 15% of its value each year, how much will it be worth after 10 years?
-
Brian and Kim have a 12-year-old child, Stan. For 2019, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500. No election is made to include Stans income on Brian and...
-
Jeanie acquires an apartment building in 2008 for $280,000 and sells it for $480,000 in 2019. At the time of sale there is $60,000 of accumulated straight-line depreciation on the apartment building....
-
Tyler, a single taxpayer, generates a net operating loss of $12,000 in 2017 and elects to forego any carryback. He also generates a net operating loss of $6,000 in 2018. Finally, in 2019, Tylers...
-
In baseball analogy, who would be the auditee? a. Pitcher b. Catcher c. Manager d. Umpire e. Some other answer
-
What internal control framework is used most often in the United States? a. Auditing Standard No. 2 b. SAS No. 99 c. COBIT d. \(\operatorname{COSO}\) e. Some other framework
-
Which would not be one of the six legs on the six-legged table of financial statements? a. The IRS b. Management c. External auditors d. PCAOB e. Board of Directors
Study smarter with the SolutionInn App