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 $201,500 and does not make any distributions to the partners.
In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $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 $28,850 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.
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 BG Income Allowed loss End of year 2 at-risk amount ar Total Loss -Ris Allowed At-Risk Disallowed Year Total LossStep by Step Solution
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