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What is the amount of passive loss deducted in 2018

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Question

Molly acquired a passive 30% interest in BG Partnership in 2017 for $48,000. At the start of 2018, Molly's adjusted basis is $14,000 and her at-risk amount in her BG interest is $12,000. In 2018, BG incurs a loss of $60,000 (Molly's share is $18,000). BG makes no distributions to any partners. In 2019, BG earns income of $10,000 (Molly's share is $3,000).

Molly contributes an additional $1,000 to BG in 2019. Molly has no other passive income in 2018 but has passive income of $2,000 from other sources in 2019. Using this information, answer the following:

a. What is the amount of suspended loss due to the basis limitations at the end of 2018?

b. What is the amount of suspended loss due to the at-risk limitation at the end of 2018?

c. What is the amount of passive loss deducted in 2018?

d. What is the amount of passive loss suspended at the end of 2018?

e. What is Molly's adjusted basis at the end of 2019?

f. What is Molly's at-risk amount at the end of 2019?

g. What is Molly's suspended loss under the passive activity rules at the end of 2019?

Reference no: EM132326075

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