#12

ASAP

Taxpayer has a tax basis of $14,000 in his partnership interest at the beginning of the partnership tax year. The following amounts of partnership debt were allocated to Taxpayer and are included in his beginning-of-the-year tax basis: - recourse debt $4,000 - nonrecourse debt $500 There were no changes to the debt allocated to Taxpayer during the tax year. If Taxpayer is allocated a $15,000 loss for the current year, determine how much of the loss will be uspended under the tax basis and at-risk limitations. $1,000 limited by basis; an additional $500 limited by at-risk No basis or at-risk limitations apply $14,000 limited by basis; an additional $1,000 limited by at-risk $500 limited by basis; an additional $1,000 limited by at-risk