In 2015, Jerry acquired an interest in a partnership in which he is not a material participant.
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In 2015, Jerry acquired an interest in a partnership in which he is not a material participant. The partnership was profitable until 2016. Jerry’s basis in the partnership interest at the beginning of 2016 was $55,000. In 2016, his share of the partnership loss was $40,000. In 2017 his share of the partnership income was $18,000. How much can Jerry deduct in 2016 and 2017?
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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Basis 55000 2016 loss 40000 suspended under the PAL rules Basis 15000 201...View the full answer
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Related Book For 
Fundamentals Of Taxation 2018
ISBN: 9781259713736
11th Edition
Authors: Ana M. Cruz Dr., Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler
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