at_risk_limits - interest expense is $35,000 and other cash...

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Topic: The at-risk rules (Sec. 465) During 2010 Jim invests $10,000 in a partnership and receives a 40% interest. The partnership then borrows $400,000 on a nonrecourse basis. The partnership buys and leases equipment. Jim materially participates in the business. During the first year, rental income totals $70,000, depreciation is $40,000,
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Unformatted text preview: interest expense is $35,000 and other cash expenses are $25,000. Required : How much of the loss can Jim deduct in 2010? How much is suspended under the at-risk limitations? Can you determine which expense is being limited under the at-risk limits?...
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This note was uploaded on 09/09/2011 for the course TAX 6845 taught by Professor Kelliher,c during the Fall '08 term at University of Central Florida.

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