Homework Answers
Part A
|
Salary |
100000 |
|
Interest income |
20000 |
|
AGI 2019 |
$120000 |
Partnership loss is the passive loss and it is not included
Part B
|
Salary |
100000 |
|
|
Interest income |
20000 |
|
|
Partnership income |
12000 |
|
|
Passive activity loss |
(12000) |
0 |
|
AGI 2020 |
120000 |
Part C
No, there wouldn’t be any change in the answer. The passive losses are to be deduced to the extent of a passive income.
Part D
|
Gain |
40000 |
|
Passive activity loss: remaining (40000-12000) |
28000 |
|
Net gain |
$12000 |
Add Answer to:
12-19 Passive-Activity Limitations. Mis a successful banker. Two years ago, M's 27-year- old son, J. asked...
HP III IIUIT IL WUJU C u partici. 12-19 Passive-Activity Limitations. M is a successful banker....
HP III IIUIT IL WUJU C u partici. 12-19 Passive-Activity Limitations. M is a successful banker. Two years ago, M's 27-year- old son, J, asked his dad to become his partner in opening a sporting goods store. Magreed and contributed $50,000 for a 50% interest in the partnership. J operates the store on his own, receiving little advice from his father. Information regarding M's financial activities reveals the following for the past two years: Interest Partnership Year Salary Income Income...
Five years ago, Gerald invested $150,000 in a passive activity, his sole investment venture. On January...
Five years ago, Gerald invested $150,000 in a passive activity, his sole investment venture. On January 1, 2018, his amount at risk in the activity was $30,000. His shares of the income and losses were as follows: Year Income (Loss) 2018 ($40,000) 2019 (30,000) 2020 50,000 Gerald holds no suspended at-risk or passive activity losses at the beginning of 2018. If an answer is zero, enter "0". A) If losses were limited only by the at-risk rules, how much can...
Problem 6-33 (LO. 5, 6, 8) Five years ago, Gerald invested $150,000 in a passive activity,...
Problem 6-33 (LO. 5, 6, 8) Five years ago, Gerald invested $150,000 in a passive activity, his sole investment venture. On January 1, 2018, his amount at risk in the activity was $30,000. His shares of the income and losses were as follows: Year Income (Loss) 2018 ($40,000) 2019 (30,000) 2020 50,000 Gerald holds no suspended at-risk or passive activity losses at the beginning of 2018. If an answer is zero, enter "0". a. If losses were limited only by...
Problem 11-49 (LO. 2, 3, 7) A number of years ago, Lee acquired a 20% interest...
Problem 11-49 (LO. 2, 3, 7) A number of years ago, Lee acquired a 20% interest in the BlueSky Partnership for $60,000. The partnership was profitable through 2018, and Lee's amount at risk in the partnership interest was $120,000 at the beginning of 2019. BlueSky incurred a loss of $400,000 in 2019 and reported income of $200,000 in 2020. Assuming that Lee is not a material participant, how much of his loss from BlueSky Partnership is deductible in 2019 and...
Problem 11-52 (Algorithmic) (LO. 2, 3, 7) Five years ago Gerald invested $184,000 in a passive...
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In 2018, Devin invested $200,000 as a limited partner in a XYZ Limited Partnership.Devin’s share of...
In 2018, Devin invested $200,000 as a limited partner in a XYZ Limited Partnership.Devin’s share of XYZ LP’s deductible loss for 2018 was $20,000.In 2018, Devin also had $100,000 in salary income, $7,000 in portfolio income, and$11,000 in passive income (from another passive activity - ABC LP). What amount of the$20,000 loss from XYZ LP can Devin deduct in 2018? Enter as a positive number. Same facts as previous question. In 2019, Devin's share of income from XYZ LP was...
12-18 b. Passive Activities. G is the head chef for Hall-way Alls, lakinig a salary of...
12-18 b. Passive Activities. G is the head chef for Hall-way Alls, lakinig a salary of $70,000 a year. In addition, his portfolio income is about $20.000 VAN the years, G has made numerous investments and has been a participant in mar ventures. Indicate whether the passive activity rules would apply in each of thi following situations: a. A $10,000 loss from G's interest in Flimsy Films, a limited partnership. G is a limited partner. A $5,000 loss from G's...
2. Smith Corp. has made S - election on the date of its incorporation in year...
2. Smith Corp. has made S - election on the date of its incorporation in year 2012. For the year 2019, Smith has a gross receipt for the year totaling $350,000 of which $100,000 is passive investment income. Expenditures directly connected to the production of the passive income total $35,000. Calculate Smith Corp.’s passive investment income tax (assume the tax rate 21%). Please show all calculations. 3. Tami, a U.S. Citizen, is a sole shareholder of S corporation, named "Happiness"....
Based only on the example provided, fil out the form below with the ordinary income and...
Based only on the example provided, fil out the form below with
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[6] For the current year, the Murray and Parker Partnership had book income of $100,000, which included the following: Long-term capital gain $7,000 Sec. 1231 loss (3.000) Dividends 200 Interest paid to partners for use of capital 12,000 The partners share profits and losses equally. What amount of partnership income (excluding all partnership items which must...
part 2 number 3 Activity in the capital accounts o 2019, follows: apital accounts of the...
part 2 number 3
Activity in the capital accounts o 2019, follows: apital accounts of the partners of Brown & Finley LLP for the fiscal Brown Capital Finley, Capital Balance, Jan, 1 $140,000 $260,000 Investment, July 1 20,000 Withdrawal, October 1 40,000 Net income of Brown & Finley LLP for the year ended Prepare a working paper to compute & Finley LLP for the year ended December 31, 2019, amounted to 586,000. Working paper to compute the division of the...
HP III IIUIT IL WUJU C u partici. 12-19 Passive-Activity Limitations. M is a successful banker. Two years ago, M's 27-year- old son, J, asked his dad to become his partner in opening a sporting goods store. Magreed and contributed $50,000 for a 50% interest in the partnership. J operates the store on his own, receiving little advice from his father. Information regarding M's financial activities reveals the following for the past two years: Interest Partnership Year Salary Income Income...
Problem 11-49 (LO. 2, 3, 7) A number of years ago, Lee acquired a 20% interest in the BlueSky Partnership for $60,000. The partnership was profitable through 2018, and Lee's amount at risk in the partnership interest was $120,000 at the beginning of 2019. BlueSky incurred a loss of $400,000 in 2019 and reported income of $200,000 in 2020. Assuming that Lee is not a material participant, how much of his loss from BlueSky Partnership is deductible in 2019 and...
Problem 11-52 (Algorithmic) (LO. 2, 3, 7) Five years ago Gerald invested $184,000 in a passive activity, his sole investment venture. On January 1, 2018, his amount at risk in the activity was $36,800. His shares of the income and losses were as follows: Year 2018 Income (Loss) ($55,200) (36,800) 56,800 2019 2020 Gerald holds no suspended at-risk or passive activity losses at the beginning of 2018. If an answer is zero, enter "0". a. If losses were limited only...
12-18 b. Passive Activities. G is the head chef for Hall-way Alls, lakinig a salary of $70,000 a year. In addition, his portfolio income is about $20.000 VAN the years, G has made numerous investments and has been a participant in mar ventures. Indicate whether the passive activity rules would apply in each of thi following situations: a. A $10,000 loss from G's interest in Flimsy Films, a limited partnership. G is a limited partner. A $5,000 loss from G's...
Based only on the example provided, fil out the form below with
the ordinary income and the three items that must be reported
separately
[6] For the current year, the Murray and Parker Partnership had book income of $100,000, which included the following: Long-term capital gain $7,000 Sec. 1231 loss (3.000) Dividends 200 Interest paid to partners for use of capital 12,000 The partners share profits and losses equally. What amount of partnership income (excluding all partnership items which must...
part 2 number 3
Activity in the capital accounts o 2019, follows: apital accounts of the partners of Brown & Finley LLP for the fiscal Brown Capital Finley, Capital Balance, Jan, 1 $140,000 $260,000 Investment, July 1 20,000 Withdrawal, October 1 40,000 Net income of Brown & Finley LLP for the year ended Prepare a working paper to compute & Finley LLP for the year ended December 31, 2019, amounted to 586,000. Working paper to compute the division of the...
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