In 2018, Kirk invested $50,000 in a general partnership in which he materially participates (passive activity loss
Question:
In 2018, Kirk invested $50,000 in a general partnership in which he materially participates (passive activity loss limits do not apply). The business incurs a first-year loss in 2018, and Kirk’s share of the business’ deductible loss was $27,000. What amount of the $27,000 loss is allowed under the at-risk rules in 2018? Enter the allowed loss amount as a positive number. Same facts as previous question. Kirk’s share of the business’ deductible loss for 2019 was $30,000.
What amount of the $30,000 loss is allowed in 2019 under the at-risk rules? Enter the allowed loss amount as a positive number. Same facts as previous question. In 2020, Kirk withdraws $6,000 from the partnership.
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello