Larry recently invested $35,400 (tax basis) in purchasing a limited partnership interest in which he will...

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Larry recently invested $35,400 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is also $35,400. In addition, Larry's share of the limited partnership loss for the year is $2,400, his share of income from a different limited partnership was $1,100, and he has $3,800 of dividend income from the stock he owns. How much of Larry's $2,400 loss from the limited partnership can he deduct in the current year? Deductible Lss Rubio recently invested $19,450 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is $14,000. In addition, Rubio's share of the limited partnership loss for the year is $23,700, his share of income from a different limited partnership is $7,550, and he has $40,200 in wage income and $16,200 in long-term capital gains. (Input the amount as positive value.) a. How much of Rubio's $23,700 loss is allowed considering only the tax-basis loss limitations? Allowable loss b. How much of the loss from part (a) is allowed under the at-risk limitations? Allowable loss c. How much of Rubio's $23,700 loss from the limited partnership can he deduct in the current year considering all limitations? Current year deduction Larry recently invested $35,400 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is also $35,400. In addition, Larry's share of the limited partnership loss for the year is $2,400, his share of income from a different limited partnership was $1,100, and he has $3,800 of dividend income from the stock he owns. How much of Larry's $2,400 loss from the limited partnership can he deduct in the current year? Deductible Lss Rubio recently invested $19,450 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is $14,000. In addition, Rubio's share of the limited partnership loss for the year is $23,700, his share of income from a different limited partnership is $7,550, and he has $40,200 in wage income and $16,200 in long-term capital gains. (Input the amount as positive value.) a. How much of Rubio's $23,700 loss is allowed considering only the tax-basis loss limitations? Allowable loss b. How much of the loss from part (a) is allowed under the at-risk limitations? Allowable loss c. How much of Rubio's $23,700 loss from the limited partnership can he deduct in the current year considering all limitations? Current year deduction

Answer rating: 100% (QA)

Part 1 Deductable loss 1100 As larry invest 35400 and her at risk also 35400 Therefore the basis and ... View the full answer