Question

You received no credit for this question in the previous attempt. Check my work View previous Required information The following information applies to the questions displayed below. Rubio recently invested $20,000 (tax basis) in purchasing a limited partnership interest. His at-risk amount is $15,000 In addition, Rubio's share of the limited partnership loss for the year is $22,000, his share of income from a different imited partnership is $5,000, and he has $40,000 in wage income and $10,000 in long-term capital gains. a. How much of Rubio's $22,000 loss is allowed considering only the tax basis loss limitations? Loss allowed as per tax basis loss limitation5,000

Answer 1

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Answer is highlighted in yellow: Solution: Answer: $20,000 Explanation: If only tax basis loss limitation is considered then upto tax basis loss can be allowed. In this case, tax basis in investment is $20000, Hence, Loss allowed as per tax basis loss limination is $20,000. It is standardized. No further explanation require The remaining $2,000 will be carryforwarded.