Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $62,500. At the beginning of year
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $62,500. At the beginning of year 1, Molly has tax basis and an at-risk amount of $26,500. In year 1, Beau Geste incurs a loss of $190,000 and does not make any distributions to the partners. In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $73,800. This includes $11,200 of passive income from other passive activities. In year 2, Beau Geste earns income of $39,000. In addition, Molly contributes an additional $24,900 to Beau Geste during year 2. Molly's AGI in year 2 is $78,600 (excluding any income or loss from Beau Geste). This amount includes $8,480 in income from her other passive investments. a. Based on the above information, complete the requirements A1 to A3. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Based on the above information, complete the following table: (Leave no answers blank. Enter zero if applicable.) 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 Req A1 Req A2 Req A3 Based on the above information, complete the following table: (Leave no answers blank. Enter zero if applicable.) Total Loss At-Risk Allowed At-Risk Disallowed Year 1 Year 2 Based on the above information, complete the following tate: At-Risk Allowed Passive Activity Loss Passive Activity Loss Allowed Disallowed Year 1 Year 2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started