In 2023, Joanne invested $110,000 for a 20% interest in a limited liability company (LLC) in which she is a material participant. The LLC reported losses of $375,000 in 2023 and $250,000 in 2024. Joanne's share of the LLC's losses was $75,000 in 2023 and $50,000 in 2024. How much of these losses can Joanne deduct? a. $75,000 in 2023; $50,000 in 2024. b. $75,000 in 2023; $35,000 in 2024. $0 in 2023; $0 in 2024. d. $75,000 in 2023; $0 in 2024. C.
In 2023, Joanne invested $110,000 for a 20% interest in a limited liability company (LLC) in which she is a material participant. The LLC reported losses of $375,000 in 2023 and $250,000 in 2024. Joanne's share of the LLC's losses was $75,000 in 2023 and $50,000 in 2024. How much of these losses can Joanne deduct? a. $75,000 in 2023; $50,000 in 2024. b. $75,000 in 2023; $35,000 in 2024. $0 in 2023; $0 in 2024. d. $75,000 in 2023; $0 in 2024. C.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter6: Losses And Loss Limitations
Section: Chapter Questions
Problem 19P
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