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Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $50,000. At the beginning of year 1,

Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $50,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $22,000. In year 1, Beau Geste incurs a loss of $208,500 and does not make any distributions to the partners.

In year 1,

Molly's AGI (excluding any income or loss from Beau Geste) is $65,800. This includes $19,900 of passive income from other passive activities.

In year 2,

Beau Geste earns income of $31,500. In addition, Molly contributes an additional $37,600 to Beau Geste during year 2. Molly's AGI in year 2 is $71,500 (excluding any income or loss from Beau Geste). This amount includes $17,800 in income from her other passive investments.

a. Based on the above information, complete the following tables: (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

$

Beau Geste Income

$

Allowed Loss:

$

End of year 2 at-risk amount

$

Year

Total Loss

At-Risk Amount

At-Risk Disallowed

1

$

$

$

2

$

$

$

Year

Passive Activity Loss Allowed

Passive Activity Loss Disallowed

1

$

$

2

$

$

B. What are the cumulative total passive suspended losses at the end of year 2?

C. Based on the above information, complete the following table: (Leave no answers blank. Enter zero if applicable.)

Year 2 AGI:

AGI Before Beau Geste

$

Year 2 passive income from Beau Geste

$

Year 2 allowed passive losses

$

Year 2 AGI

$

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