A number of years ago, Lee acquired a 20% interest in the BlueSky Partnership for $60,000. The
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A number of years ago, Lee acquired a 20% interest in the BlueSky Partnership for $60,000. The partnership was profitable through 2020, and Lee’s amount at risk in the partnership interest was $120,000 at the beginning of 2021. BlueSky incurred a loss of $400,000 in 2021 and reported income of $200,000 in 2022. Assuming that Lee is not a material participant, how much of his loss from BlueSky Partnership is deductible in 2021 and 2022? Consider the at-risk and passive activity loss rules, and assume that Lee owns no other passive investments.
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Related Book For
South-Western Federal Taxation 2022 Individual Income Taxes
ISBN: 9780357519073
45th Edition
Authors: James C. Young, Annette Nellen, William A. Raabe, Mark Persellin, William H. Hoffman
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