All numbers necessary for calculations in part b, c, d, and e are in the first picture in the require information box. Please response as soon as possible!

Required information [The following information applies to the questions displayed below.] Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a developer. On January 1 , year 1 , Farell has a $166,000 tax basis in his LLC interest that includes his $153,000 share of Sierra Vista's general liabilities. By the end of the year, Farell's share of Sierra Vista's general liabilities have increased to $166,000. Because of the time he spends in other endeavors, Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $199,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $11,000. Farell is single and has no other sources of business income or loss. (Leave no answer blank. Enter zero if applicable.) a-1. Determine how much of the Sierra Vista loss Farell will currently be able to deduct on his tax return for year 1. a-2. List the losses suspended due to tax-basis, at-risk, and passive activity loss limitations. Assume Farell's Riverwoods K-1 indicates passive income of $33,000. b-1. Determine how much of the Sierra Vista loss he will ultimately be able to deduct on his tax return for year 1. b-2. List the losses suspended due to tax-basis, at-risk, and passive activity loss limitations. Assume Farell is deemed to be an active participant in Sierra Vista. c-1. Determine how much of the Sierra Vista loss he will ultimately be able to deduct on his tax return for year 1. c-2. List the losses suspended due to tax-basis, at-risk, and passive activity loss limitations. d. Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $268,000 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return if year 1 is 2020 . e. Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $268,000 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return if year 1 is 2021

Question

All numbers necessary for calculations in part b, c, d, and e are in the first picture in the require information box. Please response as soon as possible! image text in transcribed

image text in transcribed

Required information [The following information applies to the questions displayed below.] Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a developer. On January 1 , year 1 , Farell has a $166,000 tax basis in his LLC interest that includes his $153,000 share of Sierra Vista's general liabilities. By the end of the year, Farell's share of Sierra Vista's general liabilities have increased to $166,000. Because of the time he spends in other endeavors, Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $199,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $11,000. Farell is single and has no other sources of business income or loss. (Leave no answer blank. Enter zero if applicable.) a-1. Determine how much of the Sierra Vista loss Farell will currently be able to deduct on his tax return for year 1. a-2. List the losses suspended due to tax-basis, at-risk, and passive activity loss limitations. Assume Farell's Riverwoods K-1 indicates passive income of $33,000. b-1. Determine how much of the Sierra Vista loss he will ultimately be able to deduct on his tax return for year 1. b-2. List the losses suspended due to tax-basis, at-risk, and passive activity loss limitations. Assume Farell is deemed to be an active participant in Sierra Vista. c-1. Determine how much of the Sierra Vista loss he will ultimately be able to deduct on his tax return for year 1. c-2. List the losses suspended due to tax-basis, at-risk, and passive activity loss limitations. d. Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $268,000 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return if year 1 is 2020 . e. Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $268,000 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return if year 1 is 2021