Question
[The following information applies to the questions displayed below.] Jenna began the year with a tax basis of $30,000 in her partnership interest. Her share
[The following information applies to the questions displayed below.] Jenna began the year with a tax basis of $30,000 in her partnership interest. Her share of partnership debt consists of $11,000 of recourse debt and $14,000 of nonrecourse debt at the beginning of the year and $11,000 of recourse debt and $18,000 of nonrecourse debt at the end of the year. During the year, she was allocated $50,000 of partnership ordinary business loss. Jenna does not materially participate in this partnership and she has $7,000 of passive income from other sources.
a. How much of Jennas loss is limited by her tax basis?
b. How much of Jennas loss is limited by her at-risk amount?
c. How much of Jennas loss is limited by the passive activity loss rules?
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