Question
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $57,000. At the beginning of year 1,
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $57,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $19,000. In year 1, Beau Geste incurs a loss of $225,000 and does not make any distributions to the partners. |
In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $66,200. This includes $16,700 of passive income from other passive activities. | |
In year 2, Beau Geste earns income of $31,800. In addition, Molly contributes an additional $44,260 to Beau Geste during year 2. Molly's AGI in year 2 is $71,900 (excluding any income or loss from Beau Geste). This amount includes $14,480 in income from her other passive investments. |
Based on the above information, complete the following tables: A. 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 Year 1 Total Loss At Risk Allowed At Risk Disallowed Year 2 Total Loss At Risk Allowed At risk Disallowed Year 1 Passive Activity Loss Allowed, Passive Activity Loss Disallowed
B. What are the cumulative total passive suspended losses at the end of year 2? Cumulative total passive suspended losses Year 2 AGI: AGI before Beau Geste, Year 2 passive income from Beau Geste, Year 2 allowed passive losses, Year 2 AGI. |
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