How much of the $30,000 loss from Candy Apple can John deduct currently?
How much of the $30,000 loss from Candy Apple can John deduct currently?
PLEASE SHOW HOW YOU ARRIVE AT YOUR ANSWER. THANKS!
John, a limited partner of Candy Apple, LP, is allocated $30,000 of ordinary business loss from the partnership. Before the loss allocation,
his tax basis is $20,000 and at-risk amount is $10,000. John also has ordinary business income of $20,000 from Sweet Pea, LP as a general partner and ordinary
business income of $5,000 from Red Tomato, as a limited partner. How much of the $30,000 loss from Candy Apple can John deduct currently?
$5,000 | |
$10,000 | |
$25,000 | |
$30,000 |
Is this the question you were looking for? If so, place your order here to get started!