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Jay has a tax basis of $30,000 in his partnership interest at the beginning of the partnership tax year. The following amounts of partnership debt
Jay has a tax basis of $30,000 in his partnership interest at the beginning of the partnership tax year. The following amounts of partnership debt were allocated to Jay and are included in his beginning of the year tax basis: (1) recourse debt - $19,000, (2) qualified nonrecourse debt - $1,000, and (3) nonrecourse debt - $2,100. There were no changes to the debt allocated to Jay during the tax year. If Jay is allocated a $31,000 loss for the current year, how much of the loss will be suspended under the tax basis and at-risk limitations?
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