Question
Jackie is a 20% passive partner in Sparrow Properties, LLC. Her share of Sparrows losses for the current year is $100,000. Immediately before considering the
Jackie is a 20% passive partner in Sparrow Properties, LLC. Her share of Sparrows losses for the current year is $100,000. Immediately before considering the deductibility of this loss, Jackies capital account held a balance of $50,000. She has personally guaranteed a $10,000 debt of the LLC that is allocated to her as recourse debt. Her share of the LLCs nonrecourse debt is $30,000. Jackie also has $36,000 of income from Starling, which is also a passive activity.
What is Jackies overall loss limitation?
What is Jackies at-risk loss limitation?
What is Jackies passive loss limitation?
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Financial And Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th Edition
1337119202, 978-1337119207
