Question
Jenna began the year with a tax basis of $41,000 in her partnership interest. Her share of partnership debt consists of $11,000 of recourse debt
Jenna began the year with a tax basis of $41,000 in her partnership interest. Her share of partnership debt consists of $11,000 of recourse debt and $9,000 of nonrecourse debt at the beginning of the year and $11,000 of recourse debt and $11,000 of nonrecourse debt at the end of the year. During the year, she was allocated $52,000 of partnership ordinary business loss. Jenna does not materially participate in this partnership and she has $3,000 of passive income from other sources.
a.How much of Jenna's loss is limited by her tax basis?
b.How much of Jenna's loss is limited by her at-risk amount?
c.How much of Jenna's loss is limited by the passive activity loss rules?
Can you please help me with this question as soon as possible pleaseee
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