Deductible loss
Chapter11: Invest Or Losses
Section: Chapter Questions
Problem 38P
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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
+](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F598e8257-bb63-42d3-89ee-d9c0af0d0a7d%2F3673e555-e3ff-43d7-a54f-2249ed2f6504%2Fvf04c_processed.jpeg&w=3840&q=75)
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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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