Report on tax return for current year

Reference no: EM13132532

On the first day of the partnership's tax year, Karen purchases a 50% interest in a general partnership for $30,000 cash and she materially participates in the operation of the partnership for the entire year. The partnership has $40,000 in recourse liabilities when Karen enters the partnership. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. There is no minimum gain related to the nonrecourse liability. During the year the partnership incurs a $120,000 loss. How much of the loss can Karen report on her tax return for the current year?

a. $30,000

b. $40,000

c. $50,000

d. $60,000

Reference no: EM13132532

Questions Cloud

Economic risk of loss from recourse liabilities : George pays $10,000 for a 20% interest in a general partnership which has recourse liabilities of $20,000. The partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. George's basis in his ..

Academic literary : write academic literary analysis. Take one chapter or section of the novel ( The Brief Wondrous Life of Oscar Wao by Junot Diaz ) and analyze how it develops a certain theme, character, point of view, or how the settings is of integral importance to ..

What happens when taxpayer experiences a net loss : What happens when taxpayer experiences a net loss from a rental home? The loss is fully deductible against the taxpayer's ordinary income, no matter the circumstances.

How many liters of radium, measured : If 1.0*10^15 atoms of Radium produce an average of 1.373*10^4 atoms of Radium per second, how many liters of Radium, measured at STP, are produced per day by 3.5g of Radium?

Report on tax return for current year : There is no minimum gain related to the nonrecourse liability. During the year the partnership incurs a $120,000 loss. How much of the loss can Karen report on her tax return for the current year?

Explain dependent variables of interest-children-s anxiety : Make any necessary corrections to your work based on facilitator's feedback and write: A paragraph describing the dependent variables of interest and children's anxiety as measured by the RCMAS.

Explain how much of sue loss is disallowed due to her tax : During the year, ABC LP generated a ($90,000) loss. explain how much of Sue's loss is disallowed due to her tax basis or at-risk amount?

How much of loss can he deduct against ordinary income : Harvey rents his second home. During 2009, Harvey reported a net loss of $35,000 from the rental. If Harvey is an active participant in the rental and his AGI is $80,000, how much of the loss can he deduct against ordinary income in 2009?

Stakeholder intervention : Write speech on the biggest challenges young adult face today on that includes:1. Drugs and Alcohol Abuse 2. Increasing Unemployment

User Account

All Pages