A25. Tobias is a 50% partner in Solomon LLC, which does not invest in real estate. On January 1, Tobias's adjusted basis for his LLC interest is$182,000, and his at-risk amount is $145,600. His share of losses from Solomon for the current year is $236,600, all of which is passive.Tobias owns another investment that produced $127,400 of passive activity income during the year. (Assume that Tobias is a singletaxpayer, there were no distributions or changes in liabilities during the year, and the Solomon loss is Tobias's only loss for the year fromany activity.)How much of Solomon's losses may Tobias deduct on his Form 1040? How much of the loss is suspended, and what Code provisions causethe suspensions?Applicable Provision§ 704(d)§ 465§ 469Overall limitationAt-risk limitationPassive loss limitationTherefore, Tobias can deduct $Deductible Loss Suspended Losson his return in the current year.

A capital loss that was incurred in the current or previous year but will not be eligible for…

Answered: Tobias is a 50% partner in Solomon LLC,…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter13: Corporations: Earning & Profits And Distributions

Section: Chapter Questions

Problem 34P

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Tobias is a 50% partner in Solomon LLC, which does not invest in real estate. On January 1, Tobias's adjusted basis for his LLC interest is $176,000, and his at-risk amount is $140,800. His share of losses from Solomon for the current year is $228,800, all of which is passive. Tobias owns another investment that produced $123,200 of passive activity income during the year. (Assume that Tobias is a single taxpayer, there were no distributions or changes in liabilities during the year, and the Solomon loss is Tobias's only loss for the year from any activity.) How much of Solomon's losses may Tobias deduct on his Form 1040? How much of the loss is suspended, and what Code provisions cause the suspensions? Applicable Provision Deductible Loss Suspended Loss Overall limitation $_________ $___________ At-risk limitation $__________ $___________ Passive loss limitation $_________ $____________ Therefore, Tobias can deduct $_____________ on his return in…
Larry recently invested $29,500 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is also $29,500. In addition, Larry’s share of the limited partnership loss for the year is $2,475, his share of income from a different limited partnership is $1,190, and he has $3,950 of dividend income from the stock he owns. How much of Larry’s $2,475 loss from the limited partnership can he deduct in the current year? Deductible loss?
Tobias is a 50% partner in Solomon LLC, which does not invest in real estate. On January 1, Tobias's adjusted basis for his LLC interest is $182,000, and his at-risk amount is $145,600. His share of losses from Solomon for the current year is $236,600, all of which is passive. Tobias owns another investment that produced $127,400 of passive activity income during the year. (Assume that Tobias is a single taxpayer, there were no distributions or changes in liabilities during the year, and the Solomon loss is Tobias's only loss for the year from any activity.) How much of Solomon's losses may Tobias deduct on his Form 1040? How much of the loss is suspended, and what Code provisions cause the suspensions? Applicable Provision § 704(d) § 465 § 469 Overall limitation At-risk limitation Passive loss limitation Therefore, Tobias can deduct $ Deductible Loss $ $ Suspended Loss on his return in the current year.
Klaus, a certified public accountant, earns $189,000 from his practice. He also receives $4,300 in dividends and interest from various portfolio investments. During the year, he pays $40,000 to acquire a 25% interest in a partnership that produces a $175,000 loss for the year. He has $3,000 of passive income from other sources. Compute Klaus's AGI, assuming that: a. He does not participate in the operations of the partnership. In this case, Klaus's AGI is $. b. He is a material participant in the operations of the partnership. In this case, Klaus's AGI is $.
Rubio recently invested $31,500 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is $23,050. In addition, Rubio's share of the limited partnership loss for the year is $36,950, his share of income from a different limited partnership is $6,725, and he has $51,500 in wage income and $15,750 in long-term capital gains. How much of Rubio's $36,950 loss from the limited partnership can he deduct in the current year considering all limitations
Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a developer. On January 1, year 1, Farell has a $152,000 tax basis in his LLC interest that includes his $135,000 share of Sierra Vista's general liabilities. By the end of the year, Farell's share of Sierra Vista's general liabilities have increased to $152,000. Because of the time he spends in other endeavors, Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $189,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $14,000. Farell is single and has no other sources of business income or loss. Note: Leave no answer blank. Enter zero if applicable. Problem 20-76 Part b (Algo) Assume Farell's Riverwoods K-1 indicates passive income of $27,000. Required: b-1. Determine how much of the Sierra Vista…
Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a developer. On January 1, year 1, Farell has a $126,000 tax basis in his LLC interest that includes his $115,000 share of Sierra Vista's general liabilities. By the end of the year, Farell's share of Sierra Vista's general liabilities have increased to $126,000. Because of the time he spends in other endeavors, Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $153,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $7,000. Farell is single and has no other sources of business income or loss. D. Assuming the original facts and that Farell is deemed to be an active participant in Sierra Vista, and he also has a $272,000 loss from a sole proprietorship, determine how much total trade or business…
Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a developer. On January 1, year 1, Farell has a $126,000 tax basis in his LLC interest that includes his $115,000 share of Sierra Vista's general liabilities. By the end of the year, Farell's share of Sierra Vista's general liabilities have increased to $126,000. Because of the time he spends in other endeavors, Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $153,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $7,000. Farell is single and has no other sources of business income or loss. Assuming the original facts and that Farell is deemed to be an active participant in Sierra Vista, and he also has a $272,000 loss from a sole proprietorship, determine how much total trade or business loss…
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 $20,500 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is $15,350. In addition, Rubio's share of the limited partnership loss for the year is $22,650, his share of income from a different limited partnership is $5,075, and he has $40,500 in wage income and $10,250 in long-term capital gains. a. How much of Rubio's $22,650 loss is allowed considering only the tax-basis loss limitations? b. How much of Rubio's $22,650 loss is allowed under the at-risk limitations?
Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a developer. On January 1, year 1, Farell has a $142,000 tax basis in his LLC interest that includes his $125,000 share of Sierra Vista’s general liabilities. By the end of the year, Farell’s share of Sierra Vista’s general liabilities have increased to $142,000. Because of the time he spends in other endeavors, Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $177,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $13,000. Farell is single and has no other sources of business income or loss. (Leave no answer blank. Enter zero if applicable.) rev: 11_15_2021_QC_CS-285604 Problem 20-76 Part d (Algo) d. Assuming Farell is deemed to be an active participant in Sierra Vista and he has a…
Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a developer. On January 1, year 1, Farell has a $101,000 tax basis in his LLC interest that includes his $88,000 share of Sierra Vista's general liabilities. By the end of the year, Farell's share of Sierra Vista's general liabilities have increased to $101,000. Because of the time he spends in other endeavors, Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $131,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $9,000. Farell is single and has no other sources of business income or loss. Note: Leave no answer blank. Enter zero if applicable. Problem 20-76 Part a (Algo) Required: a-1. Determine how much of the Sierra Vista loss Farell will currently be able to deduct on his tax return for…

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