In 2023, Madison invested $90,000 for a 20% interest in a limited liability company (LLC) in which she is a material participant. The LLC 2023 and $180,000 in 2024. Madison's share of the LLC's losses was $68,000 in 2023 and $36,000 in 2024. How much of these losses can Madison deduct?
In 2023, Madison invested $90,000 for a 20% interest in a limited liability company (LLC) in which she is a material participant. The LLC 2023 and $180,000 in 2024. Madison's share of the LLC's losses was $68,000 in 2023 and $36,000 in 2024. How much of these losses can Madison deduct?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In 2023, Madison invested $90,000 for a 20% interest in a limited liability company (LLC) in which she is a material participant. The LLC reported losses of $340,000 in
2023 and $180,000 in 2024. Madison's share of the LLC's losses was $68,000 in 2023 and $36,000 in 2024. How much of these losses can Madison deduct?
$68,000 in 2023; $0 in 2024.
$68,000 in 2023; $22,000 in 2024.
$0 in 2023; $0 in 2024.
$68,000 in 2023; $36,000 in 2024.
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