Inv Assing 7)

Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $49,500. At the beginning of year 1, Molly has tax basis and an at-risk amount of $30,000. In year 1, Beau Geste incurs a loss of $214,500 and does not make any distributions to the partners.

In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $65,000. This includes $10,600 of passive income from other passive activities.

In year 2, Beau Geste earns income of $36,500. In addition, Molly contributes an additional $29,550 to Beau Geste during year 2. Molly's AGI in year 2 is $68,900 (excluding any income or loss from Beau Geste). This amount includes $7,540 in income from her other passive investments.

Based on the above information, complete the requirements A1 to A3.

A)

At-Risk Amount:
Initial year 1 amount:
Allowed loss:
End of year 1 at-risk amount
Contribution for year 2
BG Income
Allowed loss:
End of year 2 at-risk amount

A2)

Total Loss At Risk Allowed At Risk Disallowed

Year 1

Year 2

A3)

At Risk Allowed Passive Activity Loss Allowed Passive Activity Loss Activity

Year 1

Year 2

B)

What are the cumulative total passive suspended losses at the end of year 2?

B2)

Based on the above information, complete the following table:

AGI before Beau Geste:

Year 2 passive income from Beau Geste:

Year 2 allowed passive losses:

Year 2 AGI: