At the beginning of the year, Jill's basis in her 40% limited partnership interest was $10,000. During the year, the partnership reported a loss of $90,000 and the partnership obtained a $40,000 recourse loan on some machinery. How much loss may Jill deduct if she has $40,000 of passive income? a) $10,000 b) $16,000 c) $26,000 d) $36,000 e) None of the above
At the beginning of the year, Jill's basis in her 40% limited partnership interest was $10,000. During the year, the partnership reported a loss of $90,000 and the partnership obtained a $40,000 recourse loan on some machinery. How much loss may Jill deduct if she has $40,000 of passive income? a) $10,000 b) $16,000 c) $26,000 d) $36,000 e) None of the above
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter6: Losses And Loss Limitations
Section: Chapter Questions
Problem 6CE
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At the beginning of the year, Jill's basis in her 40% limited partnership interest was $10,000. During the year, the partnership reported a loss of $90,000 and the partnership obtained a $40,000 recourse loan on some machinery.
How much loss may Jill deduct if she has $40,000 of passive income?
a) $10,000
b) $16,000
c) $26,000
d) $36,000
e) None of the above
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