Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. rubio recently invested $30,500 (tax basis) in pur

Rubio recently invested $30,500 (tax basis) in purchasing a limited partnership interest in which he...

90.2K

Verified Solution

Question

Accounting

Rubio recently invested $30,500 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is $22,350. In addition, Rubios share of the limited partnership loss for the year is $35,650, his share of income from a different limited partnership is $6,575, and he has $50,500 in wage income and $15,250 in long-term capital gains.

a. How much of Rubios $35,650 loss is allowed considering only the tax-basis loss limitations?

b. How much of the loss from part (a) is allowed under the at-risk limitations?

c. How much of Rubios $35,650 loss from the limited partnership can he deduct in the current year considering all limitations?

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

Medical Sciences
1.2K views

My 8-month old son has a skin rash. The doctor prescribed hydrocortisone which is an anti-inflammatory...

Biology
1.2K views

The E. coli LacZ will be used as a reporter gene and the expression of the...

Economics
1.2K views

Suppose that the government imposes a proportional income tax on the representative consumer’s wage income. That...

Calculus
1.2K views

enMain Forums Calendar Grad ring 2023 Precalculus M Rational Inequa 2 answered

Calculus
1.2K views

Find the maximum volume of a box that is resting on the xy plane with...

Accounting
1.2K views

On a trial balance, if the Debit and Credit column totals are equal, then: All...

Accounting
1.2K views

Pigot Corporation uses job costing and the budgeted manufacturing costs for the year are as...

Accounting
1.2K views

Financial data for Joel de Paris, Incorporated, for last year follow: The company paid dividends...

Accounting
1.2K views

costs were budgeted at $1,950. Power Cord Corp.'s margin of safety (MOS) in sales dollars...

Accounting
1.2K views

Since the SUTA rates changes are made at the end of each year, the available...

Accounting
1.2K views

Sweeten Company had no jobs in progress at the beginning of March and no beginning...

Accounting
1.2K views

Smith Company prepares monthly financial statements. Below are listed some selected accounts and their balances...