disposal_and_at_risk_limits - at-risk amount Thus his at...

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Topic: Disposal of a business with a suspended loss under the at-risk rules Mr. Cheney had a $6,100 outside basis in the Alcott partnership. The basis equaled his $8,000 negative capital account plus his $14,100 share of Alcott’s liabilities. Because the liabilities were nonrecourse, Mr. Cheney could not include his share in his
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Unformatted text preview: at-risk amount. Thus, his at risk amount was zero, and he had an $8,000 suspended ordinary loss under the at-risk limitations. During the year Mr. Cheney sold his interest to another partner for $1,000 cash. Required : What does Mr. Cheney recognize from the sale of his partnership interest?...
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