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 $156,000 tax basis in his LLC interest that includes his $138,000 share of Sierra Vistas general liabilities. By the end of the year, Farells share of Sierra Vistas general liabilities have increased to $156,000. 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 $193,000. 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.

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.

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.

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.

d. Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $272,000 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return if year 1 is 2020