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Rubio recently invested $22,500 (tax basis) in purchasing a limited partnership interest. His at-risk amount is $16,750. In addition, Rubio's share of the limited partnership
Rubio recently invested $22,500 (tax basis) in purchasing a limited partnership interest. His at-risk amount is $16,750. In addition, Rubio's share of the limited partnership loss for the year is $25,250, his share of income from a different limited partnership is $5,375, and he has $42,500 in wage income and $11,250 in long-term capital gains. a. How much of Rubio's $25,250 loss is allowed considering only the tax-basis loss limitations? Loss allowed as per tax basis loss limitation b. How much of the loss from part (a) is allowed under the at-risk limitations? Loss allowed as per at-risk limitation c. How much of Rubio's $25,250 loss from the limited partnership can he deduct in the current year considering all limitations? Deductible loss
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