3. Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1985. He...
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3. Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1985. He also acquired a rental house in 2013, which he actively manages. During 2013, Walter's share of the partnership's losses was $30,000, and his rental house generated $20,000 in losses. Walter's modified adjusted gross income before passive losses is $120,000.
a. Calculate the amount of Walter's allowable deduction for rental house activities for 2013. $____________
b. Calculate the amount of Walter's allowable deduction for the partnership losses for 2013. $____________
c. What may be done with the unused losses, if anything?
PartnershipA legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Related Book For
Income Tax Fundamentals 2014
ISBN: 9781285424545
32nd Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill
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