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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.
b. Based on the above information, complete the following table:
1. Cumulative total passive suspended losses:
2.
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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