Alfonso began the year with a tax basis in his partnership interest of $30,000. His share of partnership debt at the beginning and end of the year consists of $4,000 of recourse debt and $6,000 of nonrecourse debt. During the year, he was allocated $40,000 of partnership ordinary business loss. Alfonso does not materially participate in this partnership and he has $1,000 of passive income from other sources.
7.
value:
1.00 points
Required information
a. How much of Alfonso’s loss limited by his tax basis?
References
eBook & Resources
ProblemDifficulty: 2 MediumLearning Objective: 20-06 Apply the basis, at-risk, and passive activity loss limits to losses from partnerships.
Check my work
8.
value:
1.00 points
Required information
b. How much of Alfonso’s loss is limited by his at-risk amount?
References
eBook & Resources
ProblemDifficulty: 2 MediumLearning Objective: 20-06 Apply the basis, at-risk, and passive activity loss limits to losses from partnerships.
Check my work
9.
value:
1.00 points
Required information
c. How much of Alfonso’s loss is limited by the passive activity loss rules?