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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.
a. what is the "end of year 2 at-risk amount?
B. what is the passive activity loss disallowed for year 2?
C. what is the cumulative total passive suspended losses?
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