Jenna began the year with a tax basis of $24,000 in her partnership interest. Her share...
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Jenna began the year with a tax basis of $24,000 in her partnership interest. Her share of partnership debt consists of $5,000 of recourse debt and $8,000 of nonrecourse debt at the beginning of the year and $5,000 of recourse debt and $13,00o0 of nonrecourse debt at the end of the year. During the year, she was allocated $38,000 of partnership ordinary business loss. Jenna does not materially participate in this partnership and she has $8,000 of passive income from other sources. a. How much of Jenna's loss is limited by her tax basis? Loss limited by her tax basis b. How much of Jenna's loss is limited by her at-risk amount? Loss limited by her at-risk amount c. How much of Jenna's loss is limited by the passive activity loss rules? Loss limited by the passive activity loss rules Jenna began the year with a tax basis of $24,000 in her partnership interest. Her share of partnership debt consists of $5,000 of recourse debt and $8,000 of nonrecourse debt at the beginning of the year and $5,000 of recourse debt and $13,00o0 of nonrecourse debt at the end of the year. During the year, she was allocated $38,000 of partnership ordinary business loss. Jenna does not materially participate in this partnership and she has $8,000 of passive income from other sources. a. How much of Jenna's loss is limited by her tax basis? Loss limited by her tax basis b. How much of Jenna's loss is limited by her at-risk amount? Loss limited by her at-risk amount c. How much of Jenna's loss is limited by the passive activity loss rules? Loss limited by the passive activity loss rules
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a Answer 9000 Explanation Because Jennas share of nonrecourse debt increased by 5000 during the year ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
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