Chapter 7-1 Assigned Homework

Chapter 7-1 Assigned Homework - At-Risk Rules: Amount at...

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Unformatted text preview: At-Risk Rules: Amount at Risk31. Billy Bob will offset the $8,000 in passive income from Partnership A with $8,000 in losses from Partnership B. On January 1, 2008, he is at risk for $18,000 ($10,000 + $8,000) in Partnership A and $10,000 ($22,000 -$12,000) in Partnership B. He has a suspended passive loss for Partnership B of $4,000 ($12,000 -$8,000). He has no loss carryover under the at-risk rules.At-Risk Rules: Amount at Risk32. Billy Bob would offset the $9,000 in passive income from Partnership A with $9,000 in passivelosses from Partnership B. Because he was at risk for only $22,000 in Partnership B, he will have a loss carryover under the at-risk rules for Partnership B of $3,000 ($22,000 -$25,000). His at-risk amount in Partnership B on January 1, 2008, will be zero ($22,000 -$22,000). He will have asuspended passive loss from Partnership B of $13,000 ($22,000 -$9,000). On January 1, 2008, he will be at risk in Partnership A for $19,000 ($10,000 + $9,000).At-Risk Rules: Amount at Risk33. Ms. Lansing is at risk for $25,000, computed as follows:Cash contributed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000Basis of securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000Amount at risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,000At-Risk Rules: Amount at Risk34. Ms. Lansing will be at risk for $35,000, computed as follows:Amount at risk (see Problem 33) . . . . . . . . . . .. . . . . . . . . . $25,000Allocated net income . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 10,000Allocated net income ....
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Chapter 7-1 Assigned Homework - At-Risk Rules: Amount at...

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