How much of rubios loss is allowed considering tax basis

Reference no: EM13906182

Rubio recently invested $20,000 (tax basis) in purchasing a limited partnership interest. His at-risk amount is $15,000. In addition, Rubio's share of the limited partnership loss for the year is $22,000, his share of income from a different limited partnership was $5,000, and he had $40,000 in wage income and $10,000 in long-term capital gains.

a) How much of Rubio's $22,000 loss is allowed considering only the tax basis loss limitations?

b) How much of the loss from part (a) is allowed under the at-risk limitations?

c) How much of Rubio's $22,000 loss from the limited partnership can he deduct in the current year considering all limitations?

Reference no: EM13906182

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