Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several...
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Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $45,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $24,000. In year 1, Beau Geste incurs a loss of $220,500 and does not make any distributions to the partners. (i) In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $73,000. This includes $15,800 of passive income from other passive activities. (ii) In year 2, Beau Geste earns income of $32,500. In addition, Molly contributes an additional $38,650 to Beau Geste during 2012. Molly's AGI in year 2 is $76,300 (excluding any income or loss from Beau Geste). This amount includes $13,220 in income from her other passive investments. Based on the above information, determine the following amounts: (Omit the "$" sign in your response.) At-risk amount at the end of year 1 $ At-risk amount at the end of year 2 $ Losses allowed under the at-risk rules in year 2 $ Total suspended passive losses at the end of year 1 $ Total suspended at-risk losses at the end of year 2 $ Deductible losses in year 1 $ Year 2 AGI after considering Beau Geste events $
At-Risk Amount:
Initial year 1 amount:
$24,000
Allowed loss:
24,000
End of year 1 at-risk amount
$0
Contribution for year 2
$38,650
BG Income
9,750
Allowed loss:
End of year 2 at-risk amount
$
Year
Total Loss
At-Risk Allowed
At-Risk Disallowed
1
2
Year
At-Risk Allowed
Passive Activity Loss Allowed
Passive Activity Loss Disallowed
1
2
Year 2 AGI:
AGI before Beau Geste:
Year 2 passive income from Beau Geste
9,750
Year 2 allowed passive losses
Year 2 AGI
What are the cumulative total passive suspended losses at the end of year 2?
Answer & Explanation
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