Exercise 21-22 (Algorithmic) (LO. 12)

Tobias is a 50% partner in Solomon LLC, which does not invest in real estate. On January 1, 2015, Tobiass adjusted basis for his LLC interest is $230,000, and his at-risk amount is $184,000. His share of losses from Solomon for 2015 is $299,000, all of which is passive. He has another investment that produced $161,000 of passive income during 2015. (Assume there were no distributions or changes in liabilities during the year.)

How much of Solomons losses may Tobias deduct in 2015 on his Form 1040? How much of the loss is suspended and what Code provisions cause the suspensions?

Applicable Provision	Deductible Loss	Suspended Loss
Select 465 469 704(d)Item 1 Overall limitation	$	$
Select 465 469 704(d)Item 4 At-risk limitation	$	$
Select 465 469 704(d)Item 7 Passive loss limitation	$	$

Therefore, Tobias can deduct $ on his return in 2015.