Nareh began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership liabilities consists of $6,000 of recourse liabilities and $10,000 of nonrecourse liabilities at the beginning of the year and $6,000 of recourse liabilities and $13,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $65,000 of partnership ordinary business loss. Nareh does not materially participate in this partnership, and she has $4,000 of passive income from other sources.
a) How much of Nareh’s loss is limited by her tax basis?
b) How much of Nareh’s loss is limited by her at-risk amount?
c) How much of Nareh’s loss is limited by the passive activity loss rules?