Question
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $51,500. At the beginning of year 1,
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $51,500. At the beginning of year 1, Molly has tax basis and an at-risk amount of $25,500. In year 1, Beau Geste incurs a loss of $192,000 and does not make any distributions to the partners.
In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $63,200. This includes $13,100 of passive income from other passive activities.
In year 2, Beau Geste earns income of $36,200. In addition, Molly contributes an additional $27,440 to Beau Geste during year 2. Molly's AGI in year 2 is $66,800 (excluding any income or loss from Beau Geste). This amount includes $9,980 in income from her other passive investments.
a. Based on the above information, complete the following table:
b. Based on the above information, complete the following table:
Complete this question by entering your answers in the tabs below.
Req B1
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.)
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Req B2
What are the cumulative total passive suspended losses at the end of year 2?
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