Chapter+11+Class+Questions+2017 - Ryan DePaul University...

This preview shows page 1 - 2 out of 2 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
South-Western Federal Taxation 2020: Comprehensive
The document you are viewing contains questions related to this textbook.
Chapter 7 / Exercise 32
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
Expert Verified
Ryan DePaul University Class Questions Accounting 380/548 Tax Treatment of Individuals and Property Transactions Chapter 11: Investor Losses 1. In 2016, Arnold invests $80,000 (basis) for a 20% interest in a partnership in which he is a material participant . The partnership incurs a loss, with $100,000 being Arnold’s share. Which of the following statements are incorrect ? a. Since Arnold has only $80,000 of capital at risk (his basis), he cannot deduct any more than this amount against his other income. b. Arnold’s nondeductible loss of $20,000 can be carried over and used in future years (subject to the at risk provisions – does he have basis) c. If Arnold has taxable income of $40,000 from the partnership in 2017 and there are no other transactions that affect his at risk amount, he can use all of the $20,000 loss carried over from 2016. d. Arnold’s $100,000 loss is nondeductible in 2016 and 2017 under the passive loss provisions. (Is investment “active” or “passive” e. All of the statements are correct.
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
South-Western Federal Taxation 2020: Comprehensive
The document you are viewing contains questions related to this textbook.
Chapter 7 / Exercise 32
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
Expert Verified

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture