What if: Lets return to the facts in the previous example where Courtneys share of CCS loss
Question:
What if: Lets return to the facts in the previous example where Courtneys share of CCS loss was $15,000, her tax basis in their CCS interest is $10,000, and her at-risk amount in the activity is also $10,000. Further assume that Courtney received $170,000 in combined salary, $4,000 of taxable interest income from corporate bonds, $3,000 of dividends, and $5,000 of long-term capital gains. Finally, assume that Courtney also owned a rental condominium that generated $8,000 of net income. How would each of these income or loss items be allocated among the passive, portfolio, and active income and loss categories?
What if: What is Courtneys AGI for the year assuming, other than the items described above, no other items affect her AGI?
What if: Assume the facts above and that at the beginning of next year Courtney sells her limited partnership interest for $12,000. If Courtneys tax basis on the date of sale is $0, what effect does the sale have on her AGI?
Expert Answer:
To answer your questions lets break down each scenario 1 Allocation of IncomeLoss Items Courtneys sh... View the full answer
