Question
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $66,000. At the beginning of year 1,
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $66,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $27,000. In year 1, Beau Geste incurs a loss of $209,500 and does not make any distributions to the partners. |
In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $65,600. This includes $17,500 of passive income from other passive activities. | |
In year 2, Beau Geste earns income of $33,500. In addition, Molly contributes an additional $32,400 to Beau Geste during year 2. Molly's AGI in year 2 is $69,800 (excluding any income or loss from Beau Geste). This amount includes $15,480 in income from her other passive investments.
a) based on the above information, determine the following amounts: -at-risk amount at the end of year 1 -at-risk amount at the end of year 2 -losses allowed under the at-risk rules year 2 -total suspended passive losses at the end of year 1 -total suspended at-risk losses at the end of year 2 -deductible losses in year 1 -year 2 AGI after considering Beau Geste events
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