[The following information applies to the questions displayed below.] Rubio recently invested $20,000 (tax basis) in purchasing...

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[The following information applies to the questionsdisplayed below.]
Rubio recently invested $20,000 (tax basis) in purchasing alimited partnership interest. His at-risk amount is $15,000. Inaddition, Rubio’s share of the limited partnership loss for theyear is $22,000, his share of income from a different limitedpartnership is $5,000, and he has $40,000 in wage income and$10,000 in long-term capital gains.

a. How much of Rubio’s $22,000 loss is allowedconsidering only the tax-basis loss limitations?
b. How much of the loss from part (a) isallowed under the at-risk limitations?
c. How much of Rubio’s $22,000 loss from thelimited partnership can he deduct in the current year consideringall limitations?

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3.6 Ratings (318 Votes)

a Rubios initial tax basis in the limited partnership is 20000 Rubios 22000 loss reduces his tax basis to zero leaving him with a 2000 loss carryover because of the tax basis loss See Answer

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