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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