Question
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $60,000. At the beginning of year 1,
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $60,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $29,000 in year 1, Beau Geste incurs a loss of $195, 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 $74, 400. This includes $11,000 of passive income from other passive activities.
In year 2, Beau Geste earns income of $30, 800. in addition, Molly contributes an additional $25.670 to Beau Geste during year 2. Molly's AGI in year 2 is $78, 300 (excluding any income or loss from Beau Geste). this amount includes $8, 460 in income from her other passive investments.
Based on the above information, complete the following table:
At-risk Amount: | |
Initial year 1 amount | $29,000 |
Allowed loss | (29,000) |
End of year 1 at-risk amount | $0 |
Contribution for year 2 | $25,670 |
BG Income | 9,180 |
Allowed loss: | |
End of year 2 at-risk amount: |
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