Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ie invested $7,000 in the abc limited partnership

ie invested $7,000 in the ABC Limited Partnership and received a 10 percent interest in...

90.2K

Verified Solution

Question

Accounting

image ie invested $7,000 in the ABC Limited Partnership and received a 10 percent interest in the partnership. The partnership had $24,000 of qualified onrecourse debt and $24,000 of debt she is not responsible to repay because she is a limited partner. Sue is allocated a 10 percent share of both ypes of debt resulting in a tax basis of $11,800 and an at risk amount of $9,400. During the year, ABC LP generated a ( $118,000) loss. How much of iue's loss is disallowed due to her tax basis or at-risk amount? Multiple Choice Zero; all of her loss is allowed to be deducted. $2,400 disallowed because of her at-risk amount. $2,800 disallowed because of her tax basis. $4,800 disallowed because of her tax basis. $4,800 disallowed because of her at-risk amount

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students