Rachel Sanchez is a limited partner in HN Partnership, which operates a souvenir shop, and a member in Jams-n-Jellies LLC, which makes specialty food items and sells them at retail. Rachel has no involvement in the partnership business, but she handles all the advertising for the LLC. The LLC compensates her at the rate of $45 per hour, and she billed the LLC for 592 hours of work during 2015. Rachel’s only other income-generating activity is her part-time employment as a librarian. Rachel’s 2015 Schedule K-1 from HN Partnership reported that her share of ordinary business loss was $3,810. Her 2015 Schedule K-1 from Jams-n-Jellies LLC reported that her share of ordinary business income was $15,082. How much of her share of the partnership loss can Rachel deduct on her 2015 Form 1040?
Answer to relevant QuestionsMs. EH is the owner and beneficiary of a $150,000 insurance policy on her mother’s life. Ms. EH has paid $46,000 premiums, and the policy is fully paid up (no more premiums are due). She needs money and is considering ...Contrast the general rule concerning the recognition of gross income from personal activities with the general rule concerning the deductibility of personal expenses and losses. People frequently sell used appliances, old furniture and clothing, books, toys, and other personal goods through an online service such as Craigslist or eBay. Should these people recognize the cash proceeds from such sales ...Mr. Papp paid the following professional fees: To CPA for preparation of Form 1040 …………………………………….. $4,200 To CPA for preparation of federal gift tax return …………………..……… ...A burglar broke into Mr. and Mrs. Vale’s home and stole an oil painting purchased 15 years ago for $89,000. This theft was their only property loss, and their AGI was $125,000. Compute the couple’s recognized gain or ...
Post your question