Rubio recently invested $24,000 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is $17,800. In addition, Rubio’s share of the limited partnership loss for the year is $27,200, his share of income from a different limited partnership is $5,600, and he has $44,000 in wage income and $12,000 in long-term capital gains. a. How much of Rubio’s $27,200 loss is allowed considering only the tax-basis loss limitations? b. How much of the loss from part (a) is allowed under the at-risk limitations? c. How much of Rubio’s $27,200 loss from the limited partnership can he deduct in the current year considering all limitations?
Rubio recently invested $24,000 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is $17,800. In addition, Rubio’s share of the limited partnership loss for the year is $27,200, his share of income from a different limited partnership is $5,600, and he has $44,000 in wage income and $12,000 in long-term
a. How much of Rubio’s $27,200 loss is allowed considering only the tax-basis loss limitations?
b. How much of the loss from part (a) is allowed under the at-risk limitations?
c. How much of Rubio’s $27,200 loss from the limited partnership can he deduct in the current year considering all limitations?
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