Please help me with part B for Francesca.
(b) -- How much of their losses are currently not deductible by Lance and Francesca because of the tax basis limitation?
Answer -
Description | Lance | Francesca | Explanation |
Loss limited by tax basis | $0 | ($2000) | Lance's loss allocations are not limited by his tax basis; however, Francesca's has $2000 ($3000 - $1000)of losses that are not deductible currently because of the tax basis limitation. |
Please help me with part B for Francesca. Required Information [The following information applies to the...
! Required information [The following information applies to the questions displayed below.] The TimpRiders LP has operated a motorcycle dealership for a number of years. Lance is the limited partner, Francesca is the general partner, and they share capital and profits equally. Francesca works full-time managing the partnership. Both the partnership and the partners report on a calendar-year basis. At the start of the current year, Lance and Francesca had bases of $10,000 and $3,000, respectively, and the partnership did...
What is the deductible loss? Required information [The following information applies to the questions displayed below.j Rubio recently invested $21,000 (tax basis) in purchasing a limited partnership interest. His at-risk amount is $15,700. In addition, Rubio's share of the limited partnership loss for the year is $23,300, his share of income from a different limited partnership is $5,150, and he has $41,000 in wage income and $10,500 in long-term capital gains. c. How much of Rubio's $23,300 loss from the...
Required information Problem 20-61 (LO 20-4) [The following information applies to the questions displayed below.) The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $19.000, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land (51231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest...
Required information The following information applies to the questions displayed below.) Jenna began the year with a tax basis of $40,000 in her partnership interest. Her share of partnership debt consists of $7,000 of recourse debt and $8,000 of nonrecourse debt at the beginning of the year and $7,000 of recourse debt and $13,000 of nonrecourse debt at the end of the year. During the year, she was allocated $60,000 of partnership ordinary business loss. Jenna does not materially participate...
Required information The following information applies to the questions displayed below.) The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $17,400, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land ($1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 90,...
Required information [The following information applies to the questions displayed below.] Juan Diego began the year with a tax basis in his partnership interest of $50,000. During the year, he was allocated $42,000 of partnership ordinary business income, $100,000 of $1231 losses, and $100,000 of short-term capital losses and received a cash distribution of $50,000. (Do not round intermediate calculations.) a. What items related to these allocations does Juan Diego actually report on his tax return for the year? [Hint...
Problem 6-35 (LO 6-2) (Static) [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 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...
I need help with this problem, Thank you The AB partnership, a cash method, calendar year partnership, had the following income and expenses for the past calendar year: (1) Gross income from business operations $130,000 (2) Expenses deductible under § 162(a) 40,000 (3) Depreciation on machinery (calculated under the 200% declining balance method) 30,000 (4) Charitable gifts 20,000 (5) 30,000 Gain on sale of equipment used in the partnership business, $20,000 of which is ordinary under § 1245(a), and $10,000...
Styling Shoes, LLC filed its 20X8 Form 1065 on March 15, 20X9. Styling had three members with the following ownership interests and tax basis at the beginning of the 20X8: (1) Jane, a member with a 25% profits and capital interest and a $11.500 outside basis. (2) Joe, a member with a 45% profits and capital interest and a $16,500 outside basis, and (3) Jack, a member with a 30% profits and capital interest and a $8.500 outside basis. The...
What information do you need? The forms? The AB partnership, a cash method, calendar year partnership, had the following income and expenses for the past calendar year: (1) Gross income from business operations $130,000 (2) Expenses deductible under § 162(a) 40,000 (3) Depreciation on machinery (calculated under the 200% declining balance method) 30,000 (4) Charitable gifts 20,000 (5) 30,000 Gain on sale of equipment used in the partnership business, $20,000 of which is ordinary under § 1245(a), and $10,000 of...