Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $56,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $20,000. In year 1, Beau Geste incurs a loss of $187,500 and does not make any distributions to the partners.

In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $67,800. This includes $13,800 of passive income from other passive activities.

In year 2, Beau Geste earns income of $38,400. In addition, Molly contributes an additional $31,380 to Beau Geste during year 2. Molly's AGI in year 2 is $71,700 (excluding any income or loss from Beau Geste). This amount includes $10,160 in income from her other passive investments.

a. Based on the above information, complete the following table:

At-Risk Amount:
Initial year 1 amount:
Allowed loss:
End of year 1 at-risk amount
Contribution for year 2
BG Income
Allowed loss:
End of year 2 at-risk amount

b.

Year	Total Loss	At-Risk Allowed	At-Risk Disallowed
1
2

c.

Year	At-Risk Allowed	Passive Activity Loss Allowed	Passive Activity Loss Disallowed
1
2