Required information

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 $$259,000$ tax basis in his LLC interest that includes his $$244,000$ 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 $$259,000.$ Because of the time he spends in other endeavors, Farell does not materially participate in Sierra Vista. His share of the Sierra. Vista losses for year $1$ is $$294,000.$ As a partner in the Riverwoods Partnership, he also has year $1,$ Schedule K$-1$ passive income of $$13,000.$ Farell is single and has no other sources of business income or loss.

Note: Leave no answer blank. Enter zero if applicable.

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

Assume Farell's Riverwoods K$-1$ indicates passive income of $$26,000.$

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$.$

$\backslash$table$[[$b$-1.$ Deductible loss$],[$b$-2.$ Losses suspended by tax basis limitation$],[$b$-2.$Losses suspended by at$-$risk limitation$],[$b$-2.$Losses suspended by passive activity loss limitation$]]$