Question

Problem 6-35 (LO 6-2) (Static)

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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 limited 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?

b. How much of the loss from part (a) is allowed under the at-risk limitations?

c. How much of Rubio’s $22,000 loss from the limited partnership can he deduct in the current year considering all limitations?

Answer 1

on the tax basis a) The anowable loss based limitation, the basis limitation is said to be limitation amount on the basis of deduction and the loss loss of the partner in the partnership from share holdes of the corporation, that they can deduct. the the limitation which is mentioned in schedule k-1 losses and deductions is said to be basis limitation. The allowable loss on basis of limitation is $20,000 tany ) means At linulation of of amount -- that risk limitation the partner amount will oo investor able to chain, only those be deducted in the at - sisk The а a nowable loss on the basis of at disk is $15,000 + And

the pallnership Rubio has the and limited year loss of $ 22.000 the income from the limited $5,000, The limited year partnership will be implemented partnership was when two more partners are agreed persons at business. GO conduct the The partners will be liable to the amount which invested. they - considering limitations ale current year deduction مرحبا be $5,000 - And