Required information [The following information applies to the questions displayed below.] Ray and Matias own 50 percent capital and profits interests in Alpine Properties LLC. Alpine builds and manages rental real estate, and Ray and Matias each works full time (over 1,000 hours per year) managing Alpine Alpine's liabilities (at both the beginning and end of the year) consist of $1,580,000 in nonrecourse mortgages obtained from an unrelated bank and secured by various rental properties. At the beginning of the current year, Ray and Matias each had a tax basis of $250,000 in his respective LLC interest, including his share of the nonrecourse mortgage liability. Alpine's ordinary business losses for the current year totaled $616,000, and neither member is involved in other activities that generate passive income. Note: Leave no answer blank. Enter zero if applicable. c. How much of each member's loss is suspended because of the passive activity loss limitation? (Hint: See $469(c)(7)] Loss suspended Ray Matias
Required information [The following information applies to the questions displayed below.] Ray and Matias own 50 percent capital and profits interests in Alpine Properties LLC. Alpine builds and manages rental real estate, and Ray and Matias each works full time (over 1,000 hours per year) managing Alpine Alpine's liabilities (at both the beginning and end of the year) consist of $1,580,000 in nonrecourse mortgages obtained from an unrelated bank and secured by various rental properties. At the beginning of the current year, Ray and Matias each had a tax basis of $250,000 in his respective LLC interest, including his share of the nonrecourse mortgage liability. Alpine's ordinary business losses for the current year totaled $616,000, and neither member is involved in other activities that generate passive income. Note: Leave no answer blank. Enter zero if applicable. c. How much of each member's loss is suspended because of the passive activity loss limitation? (Hint: See $469(c)(7)] Loss suspended Ray Matias
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Ee 422.
![Required information
[The following information applies to the questions displayed below.]
Ray and Matias own 50 percent capital and profits interests in Alpine Properties LLC. Alpine builds and manages rental
real estate, and Ray and Matias each works full time (over 1,000 hours per year) managing Alpine Alpine's liabilities (at
both the beginning and end of the year) consist of $1,580,000 in nonrecourse mortgages obtained from an unrelated bank
and secured by various rental properties. At the beginning of the current year, Ray and Matias each had a tax basis of
$250,000 in his respective LLC interest, including his share of the nonrecourse mortgage liability. Alpine's ordinary
business losses for the current year totaled $616,000, and neither member is involved in other activities that generate
passive income.
Note: Leave no answer blank. Enter zero if applicable.
c. How much of each member's loss is suspended because of the passive activity loss limitation? (Hint: See $469(c)(7)]
Loss suspended
Ray
Matias](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f5440e2-421a-417e-a443-87e36536b491%2Fdb1ec882-19ab-4ba6-93c3-05b464d52d63%2Fooxw7j_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Ray and Matias own 50 percent capital and profits interests in Alpine Properties LLC. Alpine builds and manages rental
real estate, and Ray and Matias each works full time (over 1,000 hours per year) managing Alpine Alpine's liabilities (at
both the beginning and end of the year) consist of $1,580,000 in nonrecourse mortgages obtained from an unrelated bank
and secured by various rental properties. At the beginning of the current year, Ray and Matias each had a tax basis of
$250,000 in his respective LLC interest, including his share of the nonrecourse mortgage liability. Alpine's ordinary
business losses for the current year totaled $616,000, and neither member is involved in other activities that generate
passive income.
Note: Leave no answer blank. Enter zero if applicable.
c. How much of each member's loss is suspended because of the passive activity loss limitation? (Hint: See $469(c)(7)]
Loss suspended
Ray
Matias
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