Maria is a 55% limited partner in the newly formed XYZ Partnership. The partnership’s business is the acquisition of prime real estate properties and renting these properties to top corporate tenants. Maria invested $300,000 for his partnership interest. The partnership borrows $100,000 of nonrecourse debt for the acquisition of the real estate. The debt was borrowed from the general partner’s brother in law who sold the real estate he owned to the partnership. Maria's share of the partnership loss this first year is ($450,000.) Assuming Maria's has passive income from other so
Maria is a 55% limited partner in the newly formed XYZ Partnership. The partnership’s business is the acquisition of prime real estate properties and renting these properties to top corporate tenants. Maria invested $300,000 for his partnership interest. The partnership borrows $100,000 of nonrecourse debt for the acquisition of the real estate. The debt was borrowed from the general partner’s brother in law who sold the real estate he owned to the partnership. Maria's share of the partnership loss this first year is ($450,000.) Assuming Maria's has passive income from other so
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Maria is a 55% limited partner in the newly formed XYZ Partnership. The partnership’s business is the acquisition of prime real estate properties and renting these properties to top corporate tenants. Maria invested $300,000 for his partnership interest. The partnership borrows $100,000 of nonrecourse debt for the acquisition of the real estate. The debt was borrowed from the general partner’s brother in law who sold the real estate he owned to the partnership. Maria's share of the partnership loss this first year is ($450,000.) Assuming Maria's has passive income from other sources of $1,000,000 this year, how much of his $450,000 loss may she deduct this year. Please show your work.
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