Deductible loss
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rubio recently invested $25,000 (tax basis) in purchasing a limited partnership interest in which he will have no
management rights in the company. His at-risk amount is $18,500. In addition, Rubio's share of the limited partnership loss
for the year is $28,500, his share of income from a different limited partnership is $5,750, and he has $45,000 in wage
income and $12,500 in long-term capital gains.
c. How much of Rubio's $28,500 loss from the limited partnership can he deduct in the current year considering all limitations?
Deductible loss
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Required information
[The following information applies to the questions displayed below.]
Rubio recently invested $25,000 (tax basis) in purchasing a limited partnership interest in which he will have no
management rights in the company. His at-risk amount is $18,500. In addition, Rubio's share of the limited partnership loss
for the year is $28,500, his share of income from a different limited partnership is $5,750, and he has $45,000 in wage
income and $12,500 in long-term capital gains.
c. How much of Rubio's $28,500 loss from the limited partnership can he deduct in the current year considering all limitations?
Deductible loss
+
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