Manny Kant is invested two passive activities: Categorical, LLC and Imperative, Inc. As of 1/1/2019 he...

 

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Manny Kant is invested two passive activities: Categorical, LLC and Imperative, Inc. As of 1/1/2019 he had the following At-Risk Basis and Suspended Losses in each Investment: Categorical, LLC $100,000 0 ($20,000) In addition Manny was allocated the following passive income (loss) from the investments in 2019 and 2020 At-Risk Basis Suspended Losses under At-Risk Rules Suspended Passive Activity Losses 2019 Income/(loss) 2020 Income/(loss) Categorical, LLC $20,000 $80,000 Imperative, Inc. $0 ($10,000) ($30,000) Imperative, Inc. $30,000 ($50,000) Required: What amount of taxable income/(loss) will Manny recognize from his investment in these activities for 2020? Manny Kant is invested two passive activities: Categorical, LLC and Imperative, Inc. As of 1/1/2019 he had the following At-Risk Basis and Suspended Losses in each Investment: Categorical, LLC $100,000 0 ($20,000) In addition Manny was allocated the following passive income (loss) from the investments in 2019 and 2020 At-Risk Basis Suspended Losses under At-Risk Rules Suspended Passive Activity Losses 2019 Income/(loss) 2020 Income/(loss) Categorical, LLC $20,000 $80,000 Imperative, Inc. $0 ($10,000) ($30,000) Imperative, Inc. $30,000 ($50,000) Required: What amount of taxable income/(loss) will Manny recognize from his investment in these activities for 2020?

Answer rating: 100% (QA)

Dec214 1520 Solution Answer is highlighted in Yellow ... View the full answer