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Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $52,500. At the beginning of year 1,
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $52,500. At the beginning of year 1, Molly has tax basis and an at-risk amount of $28,500. In year 1, Beau Geste incurs a loss of $215,000 and does not make any distributions to the partners.
- In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $60,600. This includes $17,900 of passive income from other passive activities.
- In year 2, Beau Geste earns income of $33,000. In addition, Molly contributes an additional $32,500 to Beau Geste during year 2. Molly's AGI in year 2 is $65,700 (excluding any income or loss from Beau Geste). This amount includes $15,760 in income from her other passive investments.
- Based on the above information, complete the requirements A1 to A3.
- Based on the above information, complete the requirements B1 to B2.
What are the cumulative total passive suspended losses at the end of year 2 ? \begin{tabular}{|l|l|} \hline Year 2 AGI: \\ \hline AGI before Beau Geste: \\ \hline Year 2 passive income from Beau Geste & \\ \hline Year 2 allowed passive losses \\ \hline Year 2 AGI & \\ \hline \end{tabular}
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