421 chapter 11 in-class problems-completed

421 chapter 11 in-class problems-completed - 2 100,000...

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2 100,000 Investment by Alice 50,000 25% share of recourse partnership debt 150,000 At-risk amount 4 18,000 Investment by Roberto 18,000 At-risk amount 26,000 roberto's share of the loss (18,000) at-risk limitation 8,000 Loss disallowed and carried forward to a future year when Roberto has additional at-risk amounts 8 A suspended passive loss is the amount that passive losses exceed 9 Upon disposition of a passive activity the suspended losses associa passive income from the disposition and then other income. Passive income tax from passive income. 16 The assumption is that an investor that participates in the investmen be considered a passive investor and therefore, the activity would no investor. 30 Matt may be able to deduct $25,000 of rental activity loss against his Matt must participate and own at least 10% of the activity If Matt participates 750 hours in the activity, he can deduct the loss. 33 50,000 investment in 2008, all at-risk (35,000) 2008 loss, all deductible on his return, adequate amount 15,000 at-risk amount at 1-1-2009 (15,000) 2009 loss that is allowed as a deduction on his 2009 retu - at-risk amount at 1-1-2010 25,000 his share of the investment loss in 2009 (15,000) less amount deducted limited by the at-risk amount 10,000 carried forward to future periods when his at-risk amoun Tax benefit After-tax PV 35 Years Inc\(loss) or (cost) benefit factor 1 (30,000) 7,500 7,500 0.9434 2 (30,000) 3,750 3,750 0.8900 3 84,000 (21,000) 66,750 0.8396
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(15,000) 3,750 84,000 cash distrib (17,250) less tax cos 66,750 After-tax be Tax benefit After-tax PV Years Inc\(loss) or (cost) benefit factor 1 (50,000) 11,250 11,250 0.9434 2 34,000 (7,250) 26,750 0.8900 3 40,000 (10,000) 30,000 0.8396 34,000 year 2 income
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This note was uploaded on 03/19/2011 for the course ACCT 4 taught by Professor Berry during the Spring '11 term at Old Dominion.

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421 chapter 11 in-class problems-completed - 2 100,000...

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