Question
Problem 10-14 The At-Risk Rule (LO 10.8) Van makes an investment in a partnership in 2018. Van's capital contributions to the partnership consisted of $30,000
Problem 10-14 The At-Risk Rule (LO 10.8)
Van makes an investment in a partnership in 2018. Van's capital contributions to the partnership consisted of $30,000 cash and a building with an adjusted basis of $70,000, subject to a nonrecourse liability (seller financing) of $20,000.
a. Calculate the amount that Van has at-risk in the activity immediately after making the capital contributions. $
b. If Van's share of the loss from the partnership is $100,000 in 2018, and assuming that Van has sufficient amounts of passive income, how much of the loss may he deduct in 2018? $
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