Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $48,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $20,000. In year 1, Beau Geste incurs a loss of $180,000 and does not make any distributions to the partners. In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $60,000. This includes $10,000 of passive income from other passive activities. •In year 2, Beau Geste earns income of $30,000. In addition, Molly contributes an additional $30,000 to Beau Geste during year 2. Molly's AGI in year 2 is $63,000 (excluding any income or loss from Beau Geste). This amount includes $8,000 in income from her other passive investments. Required: a. Based on the above information, complete the requirements A1 to A3. b. Based on the above information, complete the requirements B1 to B2. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required B1 Required B2 What are the cumulative total passive suspended losses at the end of year 2? Cumulative total passive suspended losses
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $48,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $20,000. In year 1, Beau Geste incurs a loss of $180,000 and does not make any distributions to the partners. In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $60,000. This includes $10,000 of passive income from other passive activities. •In year 2, Beau Geste earns income of $30,000. In addition, Molly contributes an additional $30,000 to Beau Geste during year 2. Molly's AGI in year 2 is $63,000 (excluding any income or loss from Beau Geste). This amount includes $8,000 in income from her other passive investments. Required: a. Based on the above information, complete the requirements A1 to A3. b. Based on the above information, complete the requirements B1 to B2. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required B1 Required B2 What are the cumulative total passive suspended losses at the end of year 2? Cumulative total passive suspended losses
Chapter11: Investor Losses
Section: Chapter Questions
Problem 5BCRQ
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Transcribed Image Text:Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $48,000. At the
beginning of year 1, Molly has tax basis and an at-risk amount of $20,000. In year 1, Beau Geste incurs a loss of $180,000 and does not
make any distributions to the partners.
In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $60,000. This includes $10,000 of passive income from
other passive activities.
•In year 2, Beau Geste earns income of $30,000. In addition, Molly contributes an additional $30,000 to Beau Geste during year
2. Molly's AGI in year 2 is $63,000 (excluding any income or loss from Beau Geste). This amount includes $8,000 in income from
her other passive investments.
Required:
a. Based on the above information, complete the requirements A1 to A3.
b. Based on the above information, complete the requirements B1 to B2.
Complete this question by entering your answers in the tabs below.
Required A1 Required A2 Required A3 Required B1 Required B2
What are the cumulative total passive suspended losses at the end of year 2?
Cumulative total passive suspended losses
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