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Business, 08.07.2020 01:01 Jerry4891

Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $48,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $20,000. In year 1, Beau Geste incurs a loss of $180,000 and does not make any distributions to the partners. In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $60,000. This includes $10,000 of passive income from other passive activities. In year 2, Beau Geste earns income of $30,000. In addition, Molly contributes an additional $30,000 to Beau Geste during year 2. Molly's AGI in year 2 is $63,000 (excluding any income or loss from Beau Geste). This amount includes $8,000 in income from her other passive investments. a. Based on the above information, complete the following table:

At-Risk Amount:
Initial year 1 amount:
Allowed loss:
End of year 1 at-risk amount
Contribution for year 2
BG Income
Allowed loss:
End of year 2 at-risk amount

b. Based on the above information, complete the following table:

Year Total Loss At-Risk Allowed At-Risk Disallowed
1
2

c. Based on the above information, complete the following table:

Year At-Risk Allowed Passive Activity Loss Allowed Passive Activity Loss Disallowed
1
2

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Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several yea...
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