Chap 11 Basis Quiz - At-Risk Investment 25,000 +...

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Pat owns interests in 2 partnerships. He is a limited partner in partnership C. He is a general partner in partnership G and works 620 hours per year in G. In Year 1, C’s first year of operations, Pat invested $25,000 in C and his share of C’s liabilities were $30,000 ($22,000 recourse, $8,000 nonrecourse). Pat’s share of C’s losses is $64,000. Pat’s income from his share in partnership G is $30,000. In Year 2, Pat’s share of income from C is $5,000, and his income from G is $25,000 1) What is Pat’s basis in C at the end of year 1? a. ANSWER = 0 Basis Investment 25,000 + Liabilities 30,000 Basis before Losses 55,000 - Losses 55,000 EOY Basis 0 with extra 9,000 in losses suspended at the basis level
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Unformatted text preview: At-Risk Investment 25,000 + Liabilities 22,000 Basis before Losses 47,000- Losses 47,000 At-Risk with 8,000 (55,000 47,000) suspended 2) What is Pats basis at-risk in C at the end of year 2? a. ANSWER = 0 Basis At-Risk Beg Basis + Income 5,000 5,000 Basis before Losses 5,000 5,000- Loss 5,000 (from Year 1 suspended) 5,000 EOY Basis with 4,000 suspended 0 with 8,000 suspended 3) How much loss is suspended at the basis level, in any, at the end of year 2? a. ANSWER = 4,000 4) How much income is taxable to Pat in year 1 from these investments? a. ANSWER = 30,000...
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This note was uploaded on 05/26/2011 for the course ACCT 5400 taught by Professor Staff during the Spring '08 term at University of Georgia Athens.

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