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Question - Nino and Sonja form a partnership. On January 1, each partner contributes $40,000 in cash to the partnership. During the year, the partnership borrows $100,000 that is secured by equipment they purchase. The loan is non recourse. On July 15th, the partnership distributed $10,000 each to Nino and Sonja. As of December 31, the balance on the loan was $80,000. The partnership has a loss for the year of $50,000.
What is Nino's basis before deducting any of the loss? How much does Nino have at risk? How much of the loss is deductible and how much of the loss is suspended?
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