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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

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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 $84,000 tax basis in his LLC interest that includes his $72,000 share of Sierra Vista's general debt obligations. By the end of the year, Farell's share of Sierra Vista's general debt obligations has increased to $84,000. 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 $115,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $9,000. Farrell is single and has no other sources of business income or loss. Assume CARES Act applies (Leave no answer blank. Enter zero if applicable.) CARES Problem 20-76 Part a (Algo) 2-1. 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 Deductible loss 1-2 Losses suspended by tax basis limitation LOSLO suspended by at-isk limitation Los suspended by passive activity loss limitation CARES Problem 20-76 Part b (Algo) Assume Farell's Riverwoods K-1 indicates passive income of $22,000. 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 Losses suspended by at-risk limitation Losses suspended by passive activity loss limitation $ O CARES Problem 20-76 Part c (Algo) 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. 0-1 0-2 Deductible loss Losses suspended by tax basis limitation Losses suspended by at-risk limitation Losses suspended by passive activity loss limitation CARES Problem 20-76 Part d (Algo) d. Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $289,000 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return in year 1. Loss deductible

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