C how would your answer to part b change if the

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c. How would your answer to part b change if the nonrecourse loan had been used to purchase real estate rather than a fishing boat?
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Practical Guide to Partnerships and LLCs—Instructor’s Guide Solutions 4 2. R is a 25% general partner in Forlorn Partners. Her K-1 from the partnership reports the following: Net rental real estate income (loss) ($45,000) Guaranteed payments 20,000 Interest income 1,500 Unrecaptured Sec. 1250 gain 18,000 Other deductions: Charitable deductions 750 Investment interest expense 800 R is not a real estate professional. She received the guaranteed payment from the partnership for legal services provided. The Sec. 1250 gain reported by the partnership is attributable to the partnership’s sale of one of its rental real estate properties during the year. a. Compute R’s net passive loss from Forlorn Partners.
b. What is her net portfolio income?
c. How will the guaranteed payment be classified?
d. Assuming R has no passive income or loss from any other source, by how much will the information reported on this K-1 increase her taxable income?
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Practical Guide to Partnerships and LLCs—Instructor’s Guide Solutions 5 Reading: Paragraphs 1009-1013. 1. The equal QRS partnership had ($90,000) of rental real estate losses in the current year. Partner Q is the manager of the rental real estate properties for the partnership. Q’s AGI for the year is $110,000, but Q has no other passive income. How much of the losses can Q deduct?

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