Question
I am having trouble calculating this problem. Can you please assist in solving this problem? Zelda owns a 60% general interest in YZ Partnership. At
I am having trouble calculating this problem. Can you please assist in solving this problem?
Zelda owns a 60% general interest in YZ Partnership. At the beginning of 2018, the adjusted basis in her YZ interest was $95,000. For 2018, YZ generated a $210,000 business loss, earned $14,600 dividend and interest income on its investments, and recognized a $6,200 capital gain. YZ made no distributions to its partners and had no debt.
a. How much of her share of YZ's loss can Zelda deduct on her 2018 return? Assume the excess business loss limitation does not apply.
b. Compute Zelda's adjusted basis in her YZ interest at the end of 2018.
c. If Zelda received a $5,000 cash distribution from YZ during 2018, how much of her share of YZ's loss can she deduct on her 2018 return?
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