Federal income tax return

Assignment Help Financial Accounting

Reference no: EM133208263

Question 1.

Last year, Ted invested $80,000 for a 50% interest in a partnership in which he was a material participant. The partnership incurred a loss in 2020, and Ted's share was $150,000. How much of the loss is deductible on Ted's 2020 federal income tax return?

Question 2.

In 2020, Joanne invested $70,000 for a 20% interest in a limited liability company (LLC) in which she is a limited partner/owner. The LLC reported losses of $340,000 in 2020 and $180,000 in 2021. Joanne's share of the LLC's losses was $68,000 in 2020 and $36,000 in 2021. Joanne does not have any other passive investments How much of these losses can Joanne deduct in 2021?

Question 3.

Carl, a physician, earns $120,000 from his medical practice in the current year. He receives $15,000 in dividends and interest during the year as well as $35,000 of income from a passive activity. In addition, he incurs a loss of $50,000 from an investment in a passive activity, in which he has $25,000 at risk at the beginning of the year. What is Carl's AGI for the current year after considering the passive investment?

Reference no: EM133208263

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