AC553_W3_Solution7_31_32

# AC553_W3_Solution7_31_32 - passive losses from Partnership...

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1 Problem 7-31 and 7-32 Solutions At-Risk Rules: Amount at Risk Billy Bob will offset the \$8,000 in passive income from Partnership A with \$8,000 in losses from Partnership B. On January 1, 2012, 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 Risk Billy Bob would offset the \$9,000 in passive income from Partnership A with \$9,000 in
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Unformatted text preview: passive losses 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, 2012, will be zero (\$22,000 − \$22,000). He will have a suspended passive loss from Partnership B of \$13,000 (\$22,000 − \$9,000). On January 1, 2012, he will be at risk in Partnership A for \$19,000 (\$10,000 + \$9,000)....
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## This note was uploaded on 02/21/2012 for the course ACCOUNTING 553 taught by Professor James during the Spring '12 term at DeVry Phoenix.

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