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.

7.

value: 1.00 points

Required information

a. How much of Alfonsos loss limited by his tax basis?

References

eBook & Resources

ProblemDifficulty: 2 MediumLearning Objective: 20-06 Apply the basis, at-risk, and passive activity loss limits to losses from partnerships.

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8.

value: 1.00 points

Required information

b. How much of Alfonsos loss is limited by his at-risk amount?

References

eBook & Resources

ProblemDifficulty: 2 MediumLearning Objective: 20-06 Apply the basis, at-risk, and passive activity loss limits to losses from partnerships.

Check my work

9.

value: 1.00 points

Required information

c. How much of Alfonsos loss is limited by the passive activity loss rules?