Question
Problem 6: Investor Losses Manny Kant is invested two passive activities: Categorical, LLC and Imperative, Inc. As of 1/1/2021 he had the following At-Risk Basis
Problem 6: Investor Losses
Manny Kant is invested two passive activities: Categorical, LLC and Imperative, Inc. As of 1/1/2021 he had the following At-Risk Basis and Suspended Losses in each Investment:
| Categorical, LLC | Imperative, Inc. |
At-Risk Basis | $300,000 | $0 |
Suspended Losses under At-Risk Rules | 0 | ($20,000) |
Suspended Passive Activity Losses | ($50,000) | $0 |
In addition, Manny was allocated the following passive income/(loss) from the investments in 2021 and 2022:
| Categorical, LLC | Imperative, Inc. |
2021 Income/(loss) | ($50,000) | $50,000 |
2022 Income/(loss) | $200,000 | ($200,000) |
Required: 1. What is the ended at-risk basis in Imperative, Inc as of 12/31/2022?
2. Using the information from the previous part, what amount taxable income/(loss) will Manny recognize from his investment in these activities for 2022?
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