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Problem 9-59 (LO 9-4)

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

Georgio owns a 20 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses:

Sales revenue$88,000Gain on sale of land (1231)$15,600Cost of goods sold$(27,250)DepreciationMACRS$(4,950)179 deduction*$(18,400)Employee wages$(14,700)Nondeductible fines and penalties$(5,400)Municipal bond interest$7,650Short-term capital gains$5,700Guaranteed payment to Sandra$(3,650)

*Assume the 179 property placed in service limitation does not apply.

Problem 9-59 Part-b

b.What are Georgio's separately stated items for the year?

roblem 9-68 (LO 9-5)

Larry's tax basis in his partnership interest at the beginning of the year was $27,500. If his share of the partnership debt increased by $13,000 during the year and his share of partnership income for the year is $6,500, what is his tax basis in his partnership interest at the end of the year?

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Problem 9-73 (LO 9-6)

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

Alfonso began the year with a tax basis in his partnership interest of $43,000. His share of partnership debt at the beginning and end of the year consists of $10,000 of recourse debt and $7,000 of nonrecourse debt. During the year, he was allocated $61,000 of partnership ordinary business loss. Alfonso does not materially participate in this partnership and he has $3,000 of passive income from other sources.

Problem 9-73 Part a

a.How much of Alfonso's loss is limited by his tax basis?

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Problem 9-73 (LO 9-6)

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

Alfonso began the year with a tax basis in his partnership interest of $43,000. His share of partnership debt at the beginning and end of the year consists of $10,000 of recourse debt and $7,000 of nonrecourse debt. During the year, he was allocated $61,000 of partnership ordinary business loss. Alfonso does not materially participate in this partnership and he has $3,000 of passive income from other sources.

Problem 9-73 Part b

b.How much of Alfonso's loss is limited by his at-risk amount?

c.How much of Alfonso's loss is limited by the passive activity loss rules?