Question
During 2019 , Janice invested $10,000 (tax basis and at-risk basis) into XYZ limited partnership (a passive investment). Her share of the limited partnership income
During 2019, Janice invested $10,000 (tax basis and at-risk basis) into XYZ limited partnership (a passive investment). Her share of the limited partnership income for the year was $6,000, and Janice received a $5,000 distribution from XYZ limited partnership. During the year, Janice also invested $6,000 (tax basis and at-risk basis) into ABC limited partnership (a passive investment). Her share of the limited partnership loss for the year was $7,000, and Janice received a $1,500 distribution from ABC limited partnership. In 2012 Janice started DEF Corporation (a small private C corporation) by contributing $40,000. She was the only owner. During the year Janice sold her complete investment for $30,000.
What amount from the activities will be provided on 2019 1040 Sched 1 -line 5 ?
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