! Required information [The following information applies to the questions displayed below.] Ansel purchased raw land three years ago for $140,000 to hold as an investment. After watching the value of the land drop to $105,000, he decided to contribute it to Mountainside Developers LLC in exchange for a 5 percent capital and profits interest. Mountainside plans to develop the property and will treat it as inventory, like all the other real estate it holds. c. If Mountainside sells the property for $105,000 after holding it for six years, how much gain or loss does it recognize, and what is the character of the gain or loss? Required information [The following information applies to the questions displayed below.] Alfonso began the year with a tax basis in his partnership interest of $31,000. His share of partnership debt at the beginning and end of the year consists of $9,000 of recourse debt and $4,000 of nonrecourse debt. During the year, he was allocated $47,000 of partnership ordinary business loss. Alfonso does not materially participate in this partnership, and he has $3,000 of passive income from other sources. c. How much of Alfonso's loss is limited by the passive activity loss rules? Loss limited by passive activity loss rules