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#Scenario 2 : Thomas is a 2 5 % partner in a partnership. The partnership incurred a net loss of S 2 0 0 ,
#Scenario : Thomas is a partner in a partnership. The partnership incurred a net loss of S
for the year, and Thomas's share of the loss is $ Thomas's initial basis in the partnership was
$ He received a $ cash distribution from the partnership. Thomas's other income includes:
Wages: $ Interest and Dividend Income: $ Itemized Deductions: $ Allowable deduction for
self employment tax: None How much of the partnership loss can Thomas deduct considering his basis, the
at risk limitations and passive activity loss rules? How does the distribution affect his basis? Calculate
Thomas's Adjusted Gross Income AGI What is Thomas's Taxable Income? What is Thomas's TotalTax
Liability?
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