Lucy sells her partnership interest, a passive activity, with an adjusted basis of $362,500 for $398,750. In addition, she has current and suspended losses of $54,375 associated with the partnership and has no other passive activities. a.  Calculate Lucy's total gain and her current deductible loss. Her total gain is_______and her deductible loss is_______. b.  What type of income can the deductible loss offset? Lucy's deductible loss is offset against________

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter11: Invest Or Losses
Section: Chapter Questions
Problem 28CE
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Lucy sells her partnership interest, a passive activity, with an adjusted basis of $362,500 for $398,750. In addition, she has current and suspended losses of $54,375 associated with the partnership and has no other passive activities.

a.  Calculate Lucy's total gain and her current deductible loss.
Her total gain is_______and her deductible loss is_______.

b.  What type of income can the deductible loss offset?
Lucy's deductible loss is offset against________

 

 

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