Question 6.

6. (TCO G) Lewis owned an LP interest in Kate Partners, LP. He did not materially participate in the activity. On the date he gifted the Kate partnership interest to his son, Travis, his basis was $33,000. Suspended losses amounted to $10,000 as of that date. What is Travis's adjusted basis in the gift? Show your work! (Points : 15)

Question 7.

7. (TCO G) During the current year, Sam Marzella, a married taxpayer who files a joint return, reports the following items of income and loss: AGI, consisting of salary income, of $130,000, and a rental real estate loss of $40,000. Sam actively participates in the rental activity. Determine Sam's AGI for the current year. Show your work! (Points : 20)