Required Information Assume Farell's Riverwoods K$-1$ indicates passive income of $$31,000.$

Required:

b$-1.$ Determine how much of the Sierra Vista loss he will ultimately be able to deduct on his tax return for year $1.$

b$-2.$ List the losses suspended due to tax$-$basis, at$-$risk, and passive activity loss limitations$.$

b$-2.$Losses suspended by passive activity loss limitation Assume Farell is deemed to be an active participant in Sierra Vista.

Required:

c$-1.$ Determine how much of the Sierra Vista loss he will ultimately be able to deduct on his tax return for year $1.$

c$-2.$ List the losses suspended due to tax$-$basis, at$-$risk, and passive activity loss limitations$.$ d$.$ Assuming the original facts and that Farell is deemed to be an active participant in Sierra Vista, and he also has a $$273,000$ loss

from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return in year $1.$

Loss deductible

Problem $20-76($LO $20-6)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Farell is a member of Sierra Vista LLC$.$ Although Sierra Vista is involved in a number of different business ventures, it is not

currently involved in real estate either as an investor or as a developer. On January $1.$ year $1,$ Farell has a $$235,000$ tax

basis in his LLC interest that includes his $$218,000$ share of Sierra Vista's general liabilities. By the end of the year, Farell's

share of Sierra Vista's general liabilities have increased to $$235,000.$ Because of the time he spends in other endeavors.

Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year $1$ is $$270,000.$ As a partner

in the Riverwoods Partnership, he also has year $1.$ Schedule K$-1$ passive income of $$14,000.$ Farell is single and has no

other sources of business income or loss.

Note: Leave no answer blank. Enter zero If appllcable.

Problem $20-76$ Part a $($Algo$)$

Required:

a$-1.$ Determine how much of the Sierra Vista loss Farell will currently be able to deduct on his tax return for year $1.$

a$-2.$ List the losses suspended due to tax$-$basis, at$-$risk, and passive activity loss limitations$.$