Question
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $49,500. At the beginning of year 1,
| Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $49,500. At the beginning of year 1, Molly has tax basis and an at-risk amount of $30,000. In year 1, Beau Geste incurs a loss of $214,500 and does not make any distributions to the partners. |
| In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $65,000. This includes $10,600 of passive income from other passive activities. | |
| In year 2, Beau Geste earns income of $36,500. In addition, Molly contributes an additional $29,550 to Beau Geste during year 2. Molly's AGI in year 2 is $68,900 (excluding any income or loss from Beau Geste). This amount includes $7,540 in income from her other passive investments. |
| Based on the above information, complete the following tables: |
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