Van makes an investment in a partnership in 2019. Van's capital contributions to the partnership consist of $30,000 cash and a building with an adjusted basis of $70,000, subject to a nonrecourse liability (seller financing) of $20,000. a. Calculate the amount that Van has at-risk in the partnership immediately after making the capital contributions. $ b. If Van's share of the loss from the partnership is $100,000 in 2019, and assuming that Van has sufficient amounts of passive income, how much of the loss may he deduct in 2019? $ c. What may be done with any nondeductible loss in Part b? The remaining loss may be for
Van makes an investment in a partnership in 2019. Van's capital contributions to the partnership consist of $30,000 cash and a building with an adjusted basis of $70,000, subject to a nonrecourse liability (seller financing) of $20,000. a. Calculate the amount that Van has at-risk in the partnership immediately after making the capital contributions. $ b. If Van's share of the loss from the partnership is $100,000 in 2019, and assuming that Van has sufficient amounts of passive income, how much of the loss may he deduct in 2019? $ c. What may be done with any nondeductible loss in Part b? The remaining loss may be for
Chapter11: Invest Or Losses
Section: Chapter Questions
Problem 38P
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Van makes an investment in a partnership in 2019. Van's capital contributions to the partnership consist of $30,000 cash and a building with an adjusted basis of $70,000, subject to a nonrecourse liability (seller financing) of $20,000.
a. Calculate the amount that Van has at-risk in the partnership immediately after making the capital contributions.
$
b. If Van's share of the loss from the partnership is $100,000 in 2019, and assuming that Van has sufficient amounts of passive income, how much of the loss may he deduct in 2019?
$
c. What may be done with any nondeductible loss in Part b?
The remaining loss may be for
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT