Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $60,500. At the beginning of year 1,

Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $60,500. At the beginning of year 1, Molly has tax basis and an at-risk amount of $27,500. In year 1, Beau Geste incurs a loss of $214,000 and does not make any distributions to the partners.

  • In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $67,500. This includes $18,200 of passive income from other passive activities.
  • In year 2, Beau Geste earns income of $37,800. In addition, Molly contributes an additional $30,000 to Beau Geste during year 2. Molly's AGI in year 2 is $71,100 (excluding any income or loss from Beau Geste). This amount includes $15,220 in income from her other passive investments.

What is the "end of year 2 at-risk amount?

What is the year 2 "Passive Activity Loss Disallowed

What is the Cumulative total passive suspended losses?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bookkeeping And Auditing A Career Guide

Authors: Harry Watts

1st Edition

1639878106, 1639878106

More Books

Students also viewed these Accounting questions

Question

What is behavioral persuasion in advertising designed to do?

Answered: 1 week ago