• 1. Michael invests in Buxus Interests, a partnership. Michael's capital contribution to the partnership consists of $10,000 cash and equipment with an adjusted basis of $120,000 (fair market value of $150,000) subject to a non-recourse liability of $60,000. a- Calculate the amount that Michael is at-risk in the activity after making the above contribution. b- If Michael's share of the partnership loss in the year after he makes the contribution is $150,000, how much of the loss may be deducted in that year (before considering the limitations on passive losses)? Assume the partnership had no other transactions. c- What may Michael do with the nondeductible part of the loss in part b?

• 2. Cypress Road is a partnership with two partners, Saul, a 60% partner, and Robbie, a 40% partner. The partnership has income for the year of $100,000 before guaranteed payments. Guaranteed payments of $50,000 are paid to Robbie for his management services during the year. Calculate the amount of income that should be reported by Saul and Robbie from the partnership for the year. Saul should report income of ________________. Robbie should report income of _______________. 

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aThe amount that Michael is atrisk in the activity after making the above cont... View the full answer