I need answers for questions b and c; a is a correct answer.   Nareh began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership liabilities consists of $6,000 of recourse liabilities and $10,000 of nonrecourse liabilities at the beginning of the year and $6,000 of recourse liabilities and $13,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $65,000 of partnership ordinary business loss. Nareh does not materially participate in this partnership, and she has $4,000 of passive income from other sources.   a. How much of Nareh's loss is limited by her tax basis?   17000   b. How much of Nareh's loss is limited by her at-risk amount?   c. How much of Nareh's loss is limited by the passive activity loss rules?

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 2BCRQ
Question

 

I need answers for questions b and c; a is a correct answer.
 
Nareh began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership liabilities consists of $6,000 of recourse liabilities and $10,000 of nonrecourse liabilities at the beginning of the year and $6,000 of recourse liabilities and $13,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $65,000 of partnership ordinary business loss. Nareh does not materially participate in this partnership, and she has $4,000 of passive income from other sources.
 
a. How much of Nareh's loss is limited by her tax basis?
 
17000
 
b. How much of Nareh's loss is limited by her at-risk amount?
 
c. How much of Nareh's loss is limited by the passive activity loss rules?
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