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Hi, I have the answers, but I don't understand how to get the answers. Please explain thoroughly. Bob earns ($25,000) in passive losses from BHI
Hi, I have the answers, but I don't understand how to get the answers. Please explain thoroughly.
Bob earns ($25,000) in passive losses from BHI partnership. He has an outside basis of $40,000 of which $30,000 comes from non-recourse debt, and he has passive income of $50,000.
- What are the tax consequences to Bob? $10,000 deductible loss
- What basis does Bob take in his partnership interest? $15,000
- How much is Bob at-risk after the allocation? 0
- How much, if any does Bob have in the way of suspended losses? 0
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