Question
10. Jack, Jill and James own a CPA firm (Smith, Smith, Bond and Co., LLC), which is taxed as a partnership, and where each work
10. Jack, Jill and James own a CPA firm (Smith, Smith, Bond and Co., LLC), which is taxed as a partnership, and where each work full-time. Each contributed cash of $100,000 to the firm in 2019 at its beginning. The firm in the first year made $40,000 in profit in its first year. Profits and losses are split three ways.
The partnership has the following forms of debt:
Nonrecourse: $30,000
Recourse: $150,000 (The recourse debt was secured 100% by James)
Qualified Nonrecourse Mortgage: $600,000
- Calculate the passive loss limitation for each partner.
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Control And Audit Of Minicomputer Systems
Authors: British Computer Society
1st Edition
0471261866, 978-0471261865
