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Required Information

Problem $20-79($LO $20-6)($Algo$)$

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

Ray and Matias own $50$ percent capital and profits interests in Alpine Properties LLC$.$ Alpine builds and manages rental

real estate, and Ray and Matias each work full time $($over $1,000$ hours per year$)$ managing Alpine. Alpine's liabilities $($at both

the beginning and end of the year$)$ consist of $$1,670,000$ in nonrecourse mortgages obtained from an unrelated bank and

secured by various rental properties. At the beginning of the current year, Ray and Matias each had a tax basis of

$$250,000$ in his respective LLC interest, including his share of the nonrecourse mortgage liability. Alpine's ordinary

business losses for the current year totaled $$634,000.$ and neither member is involved in other activities that generate

passive income.

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

Problem $20-79$ Part d $($Algo$)$

d$.$ If both Ray and Matias are single and Ray has a current$-$year loss of $$67\mathrm{.}000$ from a sole proprietorship, how much trade or business

loss can each deduct on his tax return in the current year?