Question
Bread LLC is comprised of four equal members. During the 2008 financial downturn they were astutely advised to purchase a multi-family properly with retail space
Bread LLC is comprised of four equal members. During the 2008 financial downturn they were astutely advised to purchase a multi-family properly with retail space in Rye, NY for a significant price reduction of $2,500,000. After intense negotiations, Bread, LLC acquired the property for $2,250,000. In 2017, the Bread LLC operations resulted in $1,775,000 loss. Dr. John (a 25% owner) has a successful pediatric practice that generated a $3,500,000 salary. Dr. John has no other sources of income besides his salary and investment in Bread LLC. His at-risk basis is at the beginning of 2017 is $750,000. (His at-risk basis is the result of activity from 2008 through 2016). What amount, if any, of the loss from Bread LLC is suspended due to the at-risk/tax basis loss limitation rules?
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