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Assume Farell's Riverwoods K-1 indicates passive income of $27,000. Required: b-1. Determine how much of the Sierra Vista loss he will ultimately be able to

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Assume Farell's Riverwoods K-1 indicates passive income of $27,000. Required: 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. 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 $192,000 tax basis in his LLC interest that includes his $176,000 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 $192,000. 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 $223,000. As a partner in the Riverwoods Partnership, he also has year 1 , Schedule K-1 passive income of $12,000. Farell is single and has no other sources of business income or loss. Note: Leave no answer blank. Enter zero if applicable. Problem 20-76 Part a (Algo) Required: a4. 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 is deemed to be an active participant in Sierra Vista. Required: 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 the original facts and that Farell is deemed to be an active participant in Sierra Vista, and he also has a $274,000 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return in year 1

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