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 reatn5LC interest that includes his $218,000 share of Sierra Vistas general liabilities. By the end of the year, Farells share of Sierra Vistas general liabilities have increased to $235,000. 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 $270,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $14,000. Farell is single and has no other sources of business income or loss. (Leave no answer blank. Enter zero if applicable.) rev: 11_15_2021_QC_CS-285604 Problem 20-76 Part a (Algo)

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.

Questions:

a-1 deductible loss______

a-2 losses suspended by tax basis limitation_________

a-2 losses suspended by at-risk limitation_________

a-2 losses suspended by passive activity loss limitation _________

Problem 20-76 Part b (Algo)

Assume Farells Riverwoods K-1 indicates passive income of $31,000.

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.

Questions:

b-1 deductible loss_____

b-2 losses suspended by tax basis limitation______

b-2 losses suspended by at-risk limitation____

b-2 losses suspended by passive activity loss limitation______

Problem 20-76 Part c (Algo)

Assume Farell is deemed to be an active participant in Sierra Vista.

1. c-1. Determine how much of the Sierra Vista loss he will ultimately be able to deduct on his tax return for year

2. c-2. List the losses suspended due to tax-basis, at-risk, and passive activity loss limitations.

Questions:

c-1 deductible loss____

c-2 losses suspended by tax basis limitation_____

c-2 losses suspended by at-risk limitation_________

c-2 losses suspended by passive activity loss limitation_______

Problem 20-76 Part d (Algo)

d. Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $263,500 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return if year 1 is 2020.

question:

Total loss______