Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $62,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $26,000. In year 1, Beau Geste incurs a loss of $211,000 and does not make any distributions to the partners. In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $75,600. This includes $14,300 of passive income from other passive activities. In year 2, Beau Geste earns income of $38,000. In addition, Molly contributes an additional $32,250 to Beau Geste during year 2. Molly's AGI in year 2 is $81,000 (excluding any income or loss from Beau Geste). This amount includes $10,320 in income from her other passive investments. a. Based on the above information, complete the following table: Complete this question by entering your answers in the tabs below. Reg A1 Req A3 Based on the above information, complete the following table: Passive Activity Loss Disallowed Year 1 2 Reg A2 At-Risk Allowed Passive Activity Loss Allowed . Based on the above information, complete the following table: Complete this question by entering your answers in the tabs below. Req A2 Req A3 Based on the above information, complete the following table: (Leave no answers blank. Enter zero if applicable.) At-Risk Disallowed Req A1 Year Total Loss 1 2 At-Risk Allowed a. Based on the above information, complete the following table: Complete this question by entering your answers in the tabs below. Reg A2 Based on the above information, complete the following table: (Leave no answers blank. Enter zero if applicable.) At-Risk Amount: Initial year 1 amount Allowed loss: Req A1 End of year 1 at-risk amount Contribution for year 2 BG Income Allowed loss: Req A3 b. Based on the above information, complete the following table: Complete this question by entering your answers in the tabs below. Req B1 Req B2 What are the cumulative total passive suspended losses at the end of year 2? Cumulative total passive suspended losses b. Based on the above information, complete the following table: Complete this question by entering your answers in the tabs below. Req B1 Based on the above information, complete the following table: Year 2 AGI: AGI before Beau Geste: Year 2 passive income from Beau Geste Year 2 allowed passive losses Year 2 AGI Req B2 < Req B1 Ren 82 > Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $62,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $26,000. In year 1, Beau Geste incurs a loss of $211,000 and does not make any distributions to the partners. In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $75,600. This includes $14,300 of passive income from other passive activities. In year 2, Beau Geste earns income of $38,000. In addition, Molly contributes an additional $32,250 to Beau Geste during year 2. Molly's AGI in year 2 is $81,000 (excluding any income or loss from Beau Geste). This amount includes $10,320 in income from her other passive investments. a. Based on the above information, complete the following table: Complete this question by entering your answers in the tabs below. Reg A1 Req A3 Based on the above information, complete the following table: Passive Activity Loss Disallowed Year 1 2 Reg A2 At-Risk Allowed Passive Activity Loss Allowed . Based on the above information, complete the following table: Complete this question by entering your answers in the tabs below. Req A2 Req A3 Based on the above information, complete the following table: (Leave no answers blank. Enter zero if applicable.) At-Risk Disallowed Req A1 Year Total Loss 1 2 At-Risk Allowed a. Based on the above information, complete the following table: Complete this question by entering your answers in the tabs below. Reg A2 Based on the above information, complete the following table: (Leave no answers blank. Enter zero if applicable.) At-Risk Amount: Initial year 1 amount Allowed loss: Req A1 End of year 1 at-risk amount Contribution for year 2 BG Income Allowed loss: Req A3 b. Based on the above information, complete the following table: Complete this question by entering your answers in the tabs below. Req B1 Req B2 What are the cumulative total passive suspended losses at the end of year 2? Cumulative total passive suspended losses b. Based on the above information, complete the following table: Complete this question by entering your answers in the tabs below. Req B1 Based on the above information, complete the following table: Year 2 AGI: AGI before Beau Geste: Year 2 passive income from Beau Geste Year 2 allowed passive losses Year 2 AGI Req B2 < Req B1 Ren 82 >
Expert Answer:
Answer rating: 100% (QA)
It appears you are dealing with a taxrelated problem involving the calculation of atrisk amounts and adjustments for passive activity losses for an individual named Molly Grey who is a partner in a li... View the full answer
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
Students also viewed these accounting questions
-
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $66,000. At the beginning of year 1, Molly has a tax basis and an at-risk amount of...
-
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $60,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of...
-
Zephre Company reported net income for the year of $56,000. Depreciation expense for the year was $12,000. During the year, accounts receivable increased by $4,000, inventory decreased by $6,000,...
-
The membrane that surrounds a certain type of living cell has a surface area of 5.0 10-9 m2 and a thickness of 1.0 10-8m. Assume that the membrane behaves like a parallel plate capacitor and has a...
-
Using the information in BE20-2, prepare a pension worksheet inserting January 1, 2015, balances, showing December 31, 2015, balances, and the journal entry recording pension expense. Data From...
-
Tsingtao Companys balance sheet shows a stockholders equity book value (total common equity) of \($800,500.\) The firms earnings per share were \($3.50,\) resulting in a price/earnings ratio of...
-
In Chapter 8, you were asked to discuss the implications of the anytime, anywhere requirement for the application deployment environment and to describe the type(s) of hardware, network, and software...
-
The formula of a compound is Y3(PO4)2. The electronic configuration of the atom of Y is 15. A. 2.8.2 B. 2.8.3 C 2.8.4 16. D. 2.8.5 The atomic numbers and mass numbers of atoms, W, X, Y and Z are...
-
A two-phase liquid-vapor mixture of H2O with an initial quality of 25% is contained in a piston-cylinder assembly. The mass of the piston is 40 kg, and its diameter is 10 cm. The atmospheric pressure...
-
The value of the call option using the black-Scholes model is calculated as $25.01. Calculate the value of put option using the put call parity. The stock volatility is 0.5, time to expiration is 3...
-
Arroyo Company issued $600,000, 10-year, 6% bonds at 103. Instructions (a) Prepare the journal entry to record the sale of these bonds on January 1, 2017. (b) Suppose the remaining Premium on Bonds...
-
In an effort to achieve work-life balance, describe (1) the boundaries you'll place on your business life, (2) ways in which you'll rearrange your personal life to free up time, and (3) systems...
-
Let f(2)=tan(z). Compute P for ze [4]. Use a line, i.e.. = co + cz. You may use either method discussed during lecture (i.e., XXIXTY or Acb). Use the constant and do not round. Document every step...
-
Briefly reflect and describe the most important learning experience(s) gained by playing the Extended and Advanced Manufacturing Games
-
A) Sketch one or more level sets (your choice of level as long as the set's non-trivial) for each of the following zero-mean Gaussian p.d.f.'s in R: 1. (0,) with = 2. (0,) with = 0 5 3 2) 5
-
Does the writer of the essay "Who Would Have Thought" (an essay in the module this week) use point by point or whole by whole for her essay? Was this a good decision? Why or why not? Also, what is...
-
If your school has a subscription to the FASB Codification, go to aaahq.org/ ascLogin.cfm to log in and prepare responses to the following. (a) What is the stock dividend? (b) What is a stock split?...
-
Thriller Corporation has one class of voting common stock, of which 1,000 shares are issued and outstanding. The shares are owned as follows: Joe Jackson ......................................... 400...
-
How would your answer to Question 66 change if management determined that there was only a "50/50" chance any portion of the $1,000,000 DPADwould be sustained on audit?
-
Briefly describe the two step process a company must undertake when it evaluates whether it can record the tax benefit from an uncertain tax position under ASC 740.
-
Define the two major types of sampling strategies .
-
What makes a posttest-only design "stronger" in terms of internal validity than a design with a pretest? Is it more appropriate to include random assignment for these designs? Why or why not?
-
Discuss the three major conditions that must be met in order to establish cause and effect. Next, choose one of these conditions and come up with a scenario that would not allow a researcher to meet...
Study smarter with the SolutionInn App