Problem 20-76 (LO 20-6) (Algo) [The following information applies to the questions displayed below.] Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a developer. On January 1, year 1, Farell has a $101,000 tax basis in his LLC Interest that includes his $88,000 share of Sierra Vista's general liabilities. By the end of the year, Farell's share of Sierra Vista's general liabilities have increased to $101,000. Because of the time he spends in other endeavors. Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $131,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $9,000, Farell is single and has no other. sources of business income or loss. (Leave no answer blank. Enter zero if applicable.) Problem 20-76 Part d (Algo)
Problem 20-76 (LO 20-6) (Algo) [The following information applies to the questions displayed below.] Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a developer. On January 1, year 1, Farell has a $101,000 tax basis in his LLC Interest that includes his $88,000 share of Sierra Vista's general liabilities. By the end of the year, Farell's share of Sierra Vista's general liabilities have increased to $101,000. Because of the time he spends in other endeavors. Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $131,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $9,000, Farell is single and has no other. sources of business income or loss. (Leave no answer blank. Enter zero if applicable.) Problem 20-76 Part d (Algo)
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 27CE
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Problem 20-76 (LO 20-6) (Algo)
[The following information applies to the questions displayed below.]
Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not
currently involved in real estate either as an investor or as a developer. On January 1, year 1. Farell has a $101,000 tax
basis in his LLC Interest that includes his $88,000 share of Sierra Vista's general liabilities. By the end of the year, Farell's
share of Sierra Vista's general liabilities have increased to $101,000. Because of the time he spends in other endeavors.
Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $131,000. As a partner
In the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $9,000, Farell is single and has no other
sources of business income or loss. (Leave no answer blank. Enter zero if applicable.)
Problem 20-76 Part d (Algo)
d. Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $270,000 loss from a sole proprietorship,
determine how much total trade or business loss Farell will deduct on his return if year 1 is 2020.
Answer is complete but not entirely correct.
Total Loss
13,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3631fdc4-a6f8-45b4-b882-1af2b93e9727%2Ff51ce114-d588-4bab-b295-924203909bc9%2Fd1c0ir5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 20-76 (LO 20-6) (Algo)
[The following information applies to the questions displayed below.]
Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not
currently involved in real estate either as an investor or as a developer. On January 1, year 1. Farell has a $101,000 tax
basis in his LLC Interest that includes his $88,000 share of Sierra Vista's general liabilities. By the end of the year, Farell's
share of Sierra Vista's general liabilities have increased to $101,000. Because of the time he spends in other endeavors.
Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $131,000. As a partner
In the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $9,000, Farell is single and has no other
sources of business income or loss. (Leave no answer blank. Enter zero if applicable.)
Problem 20-76 Part d (Algo)
d. Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $270,000 loss from a sole proprietorship,
determine how much total trade or business loss Farell will deduct on his return if year 1 is 2020.
Answer is complete but not entirely correct.
Total Loss
13,000
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