60. Rubio recently invested $20,000 (tax basis) in purchasing a limited partnership interest. His at-risk amount is
Question:
60. Rubio recently invested $20,000 (tax basis) in purchasing a limited partnership interest. His at-risk amount is $15,000. In addition, Rubio’s share of the limited partnership loss for the year is $22,000, his share of income from a different limited partnership is $5,000, and he has $40,000 in wage income and $10,000 in long-term capital gains.
a. How much of Rubio’s $22,000 loss is allowed considering only the tax-basis loss limitations?
b. How much of the loss from part
(a) is allowed under the at-risk limitations?
c. How much of Rubio’s $22,000 loss from the limited partnership can he deduct in the current year considering all limitations?
Step by Step Answer:
Taxation Of Individuals And Business Entities 2020
ISBN: 9781259969614
11th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver