Determine how much of the sierra vista loss farell

Assignment Help Financial Management

Reference no: EM131874690

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 $156,000 tax basis in his LLC interest that includes his $138,000 share of Sierra Vista’s general debt obligations. By the end of the year, Farell’s share of Sierra Vista’s general debt obligations has increased to $156,000. 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 $193,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $14,000. (Leave no answer blank. Enter zero if applicable.)

a-1. Determine how much of the Sierra Vista loss Farell will currently be able to deduct on his tax return for year 1.

a-2. List the losses suspended due to tax basis, at-risk, and passive activity loss limitations.

Assume Farell’s Riverwoods K-1 indicates passive income of $38,000.

b-1. Determine how much of the Sierra Vista loss he will ultimately be able to deduct on his tax return for year 1.

b-2. List the losses suspended due to tax basis, at-risk, and passive activity loss limitations.

Assume Farell is deemed to be an active participant in Sierra Vista.

c-1. Determine how much of the Sierra Vista loss he will ultimately be able to deduct on his tax return for year 1.

c-2. List the losses suspended due to tax basis, at-risk, and passive activity loss limitations.

Reference no: EM131874690

Questions Cloud

What parameter-passing method does javascript use : What parameter-passing method does JavaScript use? Does JavaScript check types of actual parameters against the types of their corresponding formal parameters?

Compute galvin predetermined overhead allocation rate : Galvin Corporation produces customized machine parts which are produced in small batch sizes (job lots). Compute Galvin predetermined overhead allocation rate

Stock of storm using three-factor apt model : An analyst has modeled the stock of Storm using a three-factor APT model.

Describe the semantics of the join method of array : Describe the semantics of the join method of Array. Describe the semantics of the slice method when it is given just one parameter.

Determine how much of the sierra vista loss farell : Determine how much of the Sierra Vista loss Farell will currently be able to deduct on his tax return for year 1.

Describe the differences between deletion-insertion : Describe the differences between deletion, insertion, substitution and nonsense mutations. Provide an example of each using the following piece of DNA

Describe the semantics of the for-in statement : How is a new property of an object created? Describe the semantics of the for-in statement. Describe the two ways an Array object can be created.

Specific and efficient regulation of a group of genes : Briefly define an operon and explain how it enables specific and efficient regulation of a group of genes.

What are the three stages of jury selection : Victim input in plea bargaining: read about the state of law as it concerns victim input into plea bargaining and give a summary.

User Account

All Pages