In Year 1, Ed acquired a partnership interest in Teal Partnership for $50,000 and became a...

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In Year 1, Ed acquired a partnership interest in Teal Partnership for $50,000 and became a material participant in the activity. In addition, he assumed responsibility for $20,000, his share of the partnership's existing liabilities. Ed's beginning at-risk amount? Ed's share of the partnership's income for Year 1 was $25,000, and he withdrew $10,000 from the partnership during the year. Ed's at-risk amount at the end of Year 1? Ed's share of the Teal Partnership's loss for Year 2 is $100,000. Ed's deductible loss for Year 2? Ed can only deduct $ (his at-risk amount). The remaining of loss is suspended under the at-risk rules. Ed's at-risk amount at the end of Year 2? Ed's share of the partnership's income in Year 3 is $40,000. Ed's deductible loss? Ed's at-risk amount at the end of Year 3? In Year 1, Angie purchased a general partnership interest in Partnership X. Angie was at risk for $20,000. In Year 1, Angie's share of losses was $25,000 and, in Year 2, the partnership broke even. Which of the following is true with respect to the at-risk rules? A. Angie can deduct $5,000 in Year 2 if she increases her amount at risk by $5,000. B. Angie can deduct only $2,500 in Year 2 even if she increases her amount at risk by $5,000. C. Angie cannot deduct any amount in Year 2, even if the partnership incurs recourse debt, of which Angie's share is $10,000. D. Angie can deduct $5,000 only when her share of the partnership income is at least $5,000. In Year 1, Ed acquired a partnership interest in Teal Partnership for $50,000 and became a material participant in the activity. In addition, he assumed responsibility for $20,000, his share of the partnership's existing liabilities. Ed's beginning at-risk amount? Ed's share of the partnership's income for Year 1 was $25,000, and he withdrew $10,000 from the partnership during the year. Ed's at-risk amount at the end of Year 1? Ed's share of the Teal Partnership's loss for Year 2 is $100,000. Ed's deductible loss for Year 2? Ed can only deduct $ (his at-risk amount). The remaining of loss is suspended under the at-risk rules. Ed's at-risk amount at the end of Year 2? Ed's share of the partnership's income in Year 3 is $40,000. Ed's deductible loss? Ed's at-risk amount at the end of Year 3? In Year 1, Angie purchased a general partnership interest in Partnership X. Angie was at risk for $20,000. In Year 1, Angie's share of losses was $25,000 and, in Year 2, the partnership broke even. Which of the following is true with respect to the at-risk rules? A. Angie can deduct $5,000 in Year 2 if she increases her amount at risk by $5,000. B. Angie can deduct only $2,500 in Year 2 even if she increases her amount at risk by $5,000. C. Angie cannot deduct any amount in Year 2, even if the partnership incurs recourse debt, of which Angie's share is $10,000. D. Angie can deduct $5,000 only when her share of the partnership income is at least $5,000.

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