Rubio recently invested $20,000 (tax basis) in purchasing a limited partnership interest. His at-risk amount is $15,000.
Question:
a. How much of Rubio's $22,000 loss can he deduct considering only the tax basis limitation?
b. How much of the loss from part a. can Rubio deduct 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?
Partnership
A 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
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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