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Problem $7-60($LO $7-4)($Algo$)$

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

Rubio recently invested $$32,500($tax basis$)$ in purchasing a limited partnership interest in which he will have no management rights in the company. His at$-$risk amount is $$23,750.$ In addition, Rubio's share of the limited partnership loss for the year is $$38,250,$ his share of income from a different limited partnership is $$6,875,$ and he has $$52,500$ in wage income and $$16,250$ in long$-$term capital gains.

Problem $7-60$ Part$-$a $($Algo$)$

a$.$ How much of Rubio's $$38,250$ loss is allowed considering only the tax$-$basis loss limitations$?$

Loss allowed as per tax basis loss limitation

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Problem $7-60($LO $7-4)($Algo$)$

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

Rubio recently invested $$32,500($tax basis$)$ in purchasing a limited partnership interest in which he will have no management rights in the company. His at$-$risk amount is $$23,750.$ In addition, Rubio's share of the limited partnership loss for the year is $$38,250,$ his share of income from a different limited partnership is $$6,875,$ and he has $$52,500$ in wage income and $$16,250$ in long$-$term capital gains.

Problem $7-60$ Part$-$b $($Algo$)$

b$.$ How much of Rubio's $$38,250$ loss is allowed under the at$-$risk limitations$?$

Loss allowed as per at$-$risk limitation

Required information

Problem $7-60($LO $7-4)($Algo$)$

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

Rubio recently invested $$32,500($tax basis$)$ in purchasing a limited partnership interest in which he will have no management rights in the company. His at$-$risk amount is $$23,750.$ In addition, Rubio's share of the limited partnership loss for the year is $$38,250,$ his share of income from a different limited partnership is $$6,875,$ and he has $$52,500$ in wage income and $$16,250$ in long$-$term capital gains.

Problem $7-60$ Part$-$c $($Algo$)$

c$.$ How much of Rubio's $$38,250$ loss from the limited partnership can he deduct in the current year considering all limitations$?$

Deductible loss

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Problem $7-60($LO $7-4)($Algo$)$

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

Rubio recently invested $$32,500($tax basis$)$ in purchasing a limited partnership interest in which he will have no management rights in the company. His at$-$risk amount is $$23,750.$ In addition, Rubio's share of the limited partnership loss for the year is $$38,250,$ his share of income from a different limited partnership is $$6,875,$ and he has $$52,500$ in wage income and $$16,250$ in long$-$term capital gains.

Problem $7-60$ Part$-$b $($Algo$)$

b$.$ How much of Rubio's $$38,250$ loss is allowed under the at$-$risk limitations$?$

Loss allowed as per at$-$risk limitation

Required information

Problem $7-60($LO $7-4)($Algo$)$

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

Rubio recently invested $$32,500($tax basis$)$ in purchasing a limited partnership interest in which he will have no management rights in the company. His at$-$risk amount is $$23,750.$ In addition, Rubio's share of the limited partnership loss for the year is $$38,250,$ his share of income from a different limited partnership is $$6,875,$ and he has $$52,500$ in wage income and $$16,250$ in long$-$term capital gains.

Problem $7-60$ Part$-$a $($Algo$)$

a$.$ How much of Rubio's $$38,250$ loss is allowed considering only the tax$-$basis loss limitations$?$

Loss allowed as per tax basis loss limitation