Question: Warren is a 50% partner in Berkshire LLC, which does not invest in real estate. On January 1, Warren's adjusted basis for his LLC interest

Warren is a 50% partner in Berkshire LLC, which does not invest in real estate. On January 1, Warren's adjusted basis for his LLC interest is $233,000, and his at-risk amount is $186,400. His share of losses from Berkshire for the current year is $302,900, all of which is passive. Warren owns another investment that produced $163,100 of passive activity income during the year. (Assume that Warren is a single taxpayer, there were no distributions or changes in liabilities during the year, and that the Berkshire loss is Warren's only loss for the year from any activity.)How much of Berkshire's losses may Warren deduct on his Form 1040? How much of the loss is suspended?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

1 Answer the following questions based upon the Five Below Annual Report Balance Sheet exercise. 1 point What was the amount of change in Total Current Assets for Five Below from January 30, 2021...

18. LO.6 Tobias is a 50% partner in Solomon LLC, which does not invest in real estate. On January 1, Tobiass adjusted basis for his LLC interest is $130,000, and his at-risk amount is $105,000. His...

LO . 6 Tobias is a 5 0 % partner in Solomon LLC , which does not invest in real estate.On January 1 , Tobias's adjusted basis for his LIC interest is $ 1 3 0 , 0 0 0 , and his at - risk amount is $ 1...

1. Exercise 10-17 (Algorithmic) (LO. 3) Henrietta transfers cash of $259,200 and equipment with a fair market value of $77,760 (basis to her as a sole proprietor, $31,104) in exchange for a 40%...

1. Henrietta transfers cash of $259,200 and equipment with a fair market value of $77,760 (basis to her as a sole proprietor, $31,104) in exchange for a 40% profit and loss interest worth $336,960....

explain step by step Carlisle is a 50% partner in Brandi LLC, which does not invest in real estate. On January 11, Carlisle's adjusted basis for her LLC interest is $451,000, and her at-risk amount...

Problem 1 4 - 1 8 ( Algorithmic ) ( LO . 6 ) Tobias is a 5 0 % partner in Solomon LLC , which does not invest in real estate. On January 1 , Tobias's adjusted basis for his LLC interest is $ 2 3 6 ,...

Tobias is a 50% partner in Solomon LLC, which does not invest in real estate. On January 1, Tobias's adjusted basis for his LLC interest is $212,000, and his at-risk amount is $169,600. His share of...

Exercise 10-26 (Algorithmic) (LO. 12) Tobias is a 50% partner in Solomon LLC, which does not invest in real estate. On January 1, Tobias's adjusted basis for his LLC interest is $275,000, and his...

Exercise 21-22 (Algorithmic) (LO. 12) Tobias is a 50% partner in Solomon LLC, which does not invest in real estate. On January 1, 2015, Tobiass adjusted basis for his LLC interest is $230,000, and...

Exercise 10-25 (Algorithmic) (LO. 12) Tobias is a 50% partner in Solomon LLC, which does not invest in real estate. On January 1, Tobias's adjusted basis for his LLC interest is $188,000, and his...

If Darnell wants to use a positive reinforcement technique, which of the following should Darnell do? Give Eleanor a bonus. Pay no attention to Eleanor Give instructions to Eleanor. O stop nagging...

Chemlink Inc. uses a standard cost system to account for the costs of its production of Chemical X. Standards are 3.1 gallons of materials at $122 per gallon and 27 hours of labor at a standard wage...

Having completed and recorded your detailed analysis of the key factors affecting a borrower s creditworthiness, what is the next step of the Integrated Analysis and Decision - Making ( IADM )...

Represent the electrical network shown in Figure P3.2 in state space, where i R (t) is the output. 3 2H Vy(1) v(t) 3F 4v1(1) 32 iR(1) FIGURE P3.2

Gotham City has been divided into eight districts. The time (in minutes) it takes an ambulance to travel from one district to another is shown in Table 100. The population of each district (in...

The 50-kg flywheel has a radius of gyration k = 0.4 m about its shaft axis and is subjected to the torque M = 2(1 e 0.1 ) Nm, where is in radians. If the flywheel is at rest when = 0, determine...

Let S = {a, b, c, d, e, f, g} be a collection of objects with benefit-weight values, a: (12, 4), b : (10, 6), c : (8, 5), d: (11, 7), e: (14, 3), f : (7, 1), g : (9, 6). What is an optimal solution...

The roller coaster in Figure 1.39 starts at the top of a straight track that is inclined 30? with the horizontal. This causes it to accelerate at a rate of 4.9 m/s 2 (1/2 g).(a) What is the roller...

Pavel has decided to accept his employer s termination package, which will give him six months of pay and benefits in lieu of six months of notice. What condition will the employer likely stipulate...

2. How might you assess the accuracy of Jims attributions? What questions could you ask him to help you decide whether his perceptions are well founded or biased? Apply what youve learned in this...

4. What could you say to Jim to help him and his parents reach a shared perspective on his academic work? Apply what youve learned in this chapter by analyzing the following case study, using the...

1. Learn more about factinference confusion and other ways in which language and perception affect our thinking by visiting the website of the Institute of General Semantics. You can access it by...