#8 & 9

Rochelle is a limited partner in Megawatt Partnership. For 2022, her schedule K-1 from the partnership reported the following share of partnership items: Required: a. Calculate the net impact of the given items on Rochelle's 2022 taxable income. Assume that Rochelle does not qualify for the QBI deduction. b. Assume that Rochelle's marginal tax rate is 35 percent. Calculate her 2022 after-tax cash flow as a result of her interest in Megawatt. Complete this question by entering your answers in the tabs below. Calculate the net impact of the given iterns on Rochelle's 2022 taxable income. Assume that Rochelle does not qualify for the QBI deduction. This year, individual X and individual Y formed XY Partnership. X contributed $41,750 cash, and Y contributed business assets with a $41,750FMV. Y's adjusted basis in these assets was only $8,350. The parthership agreement provides that income and loss will be divided equally between the two partners. Partnership operations for the year generated a $63,600 loss. Required: How much loss may each partner deduct currently, and what basis will each partner have in their interest at the beginning of next year? Assume the excess business loss limitation does not apply to either X or Y. Note: Losses and deductions should be entered as negative numbers