Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1985. He also

Question:

Walter, a single taxpayer, purchased a limited interest in a tax shelter in 1985. He also acquired a rental house in 2014, which he actively manages. During 2014, Walter’s share of the partnership’s losses was $30,000, and his rental house generated $20,000 in losses. Walter’s modified adjusted gross income before passive losses is $120,000.
a. Calculate the amount of Walter’s allowable deduction for rental house activities for 2014.
$____________
b. Calculate the amount of Walter’s allowable deduction for the losses for 2014.
$____________
c. What may be done with the unused losses, if anything?
____________________________________________________________________________________________________________________________________________________________ Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...