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, complete the following: At Risk Amount Initial Year 1 amount $27,000 Allowed Loss ($27,000) End Year 1 at-risk amount 0 Contribution for Year 2 $32,400 BG Income $10,050 Allowed Loss _______ end Year 2 at-risk amount _____ Year 1 Total Los _______ At-risk allowed ________ At -risk disallowed ______ Year 2 total loss at risk allowed at risk disallowed Year 1 Passive Activity Loss Allowed Passive activity loss disallowed b. What are the cumulative total passive suspended losses at the end of year 2? Cumulative total passive suspended losses ________ Year 2 AGI AGIE before Beau Geste 69,800 Year 2 Passive income from BG 10,050 Year 2 allowed passive losses ______ Year 2 AGI _____
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