During the current year, Ben worked 1,500 hours as a tax consultant and 500 hours as a real estate agent. His one other employee (his wife) worked 350 hours in the real estate business. Ben eamed $60,000 as a tax consultant, and together the couple lost $18,000 in the real estate business. 

How should Ben treat the loss on his federal income tax return?

Instructions:

 

In 2018, Matthew contributes equipment with an adjusted basis of $40,000 and an FMV of $36,000 to Construction Limited Partnership (CLP) in return for a 3% limited partnership interest. Matthew's share of CLP income and losses for the year were as follows: Interest Dividends Capital gains Ordinary loss $1,000 600 1,800 (8,650) CLP had no liabilities. What are Matthew's initial basis, allowed losses, and ending at-risk amount?