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 $120,000 tax basis in his LLC interest that includes his $105,000 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 $120,000. 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 $147,000. 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.) 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. $ 11,000 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 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. 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 $ 0 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. 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 0 d. Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $262,500 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return if year 1 is 2020. Total Loss e. Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $262,500 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return if year 1 is 2021. Loss deductible 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 $120,000 tax basis in his LLC interest that includes his $105,000 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 $120,000. 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 $147,000. 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.) 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. $ 11,000 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 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. 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 $ 0 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. 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 0 d. Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $262,500 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return if year 1 is 2020. Total Loss e. Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $262,500 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return if year 1 is 2021. Loss deductible
