Chapter 7-1 Assigned Homework

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

This preview shows pages 1–2. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

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 ....
View Full Document

{[ snackBarMessage ]}

### Page1 / 4

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online