R is a 25% general partner in Forlorn Partners. Her K-1 from the partnership reports the following: Net rental real estate income (loss) ($45,000) Guaranteed payments 20,000 Interest income 1,500 Unrecaptured Sec. 1250 gain 18,000 Other deductions: Charitable deductions 750 Investment interest expense 800 R is not a real estate professional. She received the guaranteed payment from the partnership for legal services provided. The Sec. 1250 gain reported by the partnership is attributable to the partnership’s sale of one of its rental real estate properties during the year.

a) Compute R’s net passive loss from Forlorn Partners.

b) What is her net portfolio income?

c) Assuming R has no passive income or loss from any other source, by how much will the information reported on this K-1 increase her taxable income?

Answer rating: 100% (QA)

Required solution Ans a Computation of Rs net passive loss from Forl... View the full answer