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Problem LO Algo
The following information applies to the questions displayed below.
Ray and Matias own percent capital and profits interests in Alpine Properties LLC Alpine builds and manages rental
real estate, and Ray and Matias each work full time over hours per year managing Alpine. Alpine's liabilities at both
the beginning and end of the year consist of $ in nonrecourse mortgages obtained from an unrelated bank and
secured by various rental properties. At the beginning of the current year, Ray and Matias each had a tax basis of
$ in his respective LLC interest, including his share of the nonrecourse mortgage liability. Alpine's ordinary
business losses for the current year totaled $ and neither member is involved in other activities that generate
passive income.
Note: Leave no answer blank. Enter zero if applicable.
Problem Part d Algo
d If both Ray and Matias are single and Ray has a currentyear loss of $ from a sole proprietorship, how much trade or business
loss can each deduct on his tax return in the current year?
Answer is complete but not entirely correct.
