Question

Clipboard Font Alignment Number B22 2 11-34 In 2016, Fred invested $50,000 in a general partnership. Fred's interest is not considered to be 3 a passive activity. If his share of the partnership losses is $35,000 in 2016 and $25,000 in 2017, how 4 much can he deduct in each year? Green requires your in 2017 2018 8 Beginning at Risk Balance 9 Investment in Partnership 10 Less Share of Loss 11 Ending at risk 12 Deduction allowed 13 14 15 16 Explain below if need be 18 19

Answer 1

	2017	2018
Beg at risk balance	$15,000.00	$-
Investment	$-	$-
Less: Share of loss	$15,000.00	$-
Ending at risk	$-	$-
Deduction allowed	$15,000.00	$-
However, for 2016 his deduction would be 35000 i.e. the
loss he has incurred in the partnership in 2016. This would leave
beginning risk balance of 2017 to be 15000 ( 50000 - 35000).
In 2017, loss will be restricted to $ 15000 since he has not increased his
investment