Question

Ben Figgie acquired a passive partnership activity in January of 2013. His at-risk basis at the beginning of 2017 was $65,000. Ben Figgie also owns a rental property that generated income of $15,000 in 2017and $12,000 in 2018. Ben Figgie’s share of income and loss from the partnership activity is:

2017 <$95,000>

2018 55,000

Complete the following tables.

AT RISK RULES ONLY FOR 2017

Deductible under at-risk provisions ____________________

Adjusted basis at 12/31/17 ____________________

Suspended under at-risk provisions ____________________

FOR 2018

Deductible under at-risk provisions ____________________

Adjusted basis at 12/31/18 ____________________

Suspended under at-risk provisions ____________________

PASSIVE RULES ONLY FOR 2017

Deductible under passive loss provisions ____________________

Suspended under passive loss provisions ____________________

FOR 2018

Deductible under passive loss provisions ____________________

Suspended under passive loss provisions ____________________

BONUS (apply both at risk and passive rules)

FOR 2017

Deductible under at-risk provisions ____________________

Adjusted basis at 12/31/17 ____________________

Suspended under at-risk provisions ____________________

Deductible under passive loss provisions ____________________

Suspended under passive loss provisions ____________________

FOR 2018

Deductible under at-risk provisions ____________________

Adjusted basis at 12/31/18 ____________________

Suspended under at-risk provisions ____________________

Deductible under passive loss provisions ____________________

Suspended under passive loss provisions ____________________

Answer 1

For 2017(Risk rules)
Deductible under at risk provisions(upto the limit of at risk basis)	65000
for Adjusted basis at 12/31/2017
At risk basis	65000
Loss for 2017-upto the limit of basis	65000
Adjusted basis at 12/31/2017(65000-65000)	0
Suspended under at risk provisions
Share of loss for 2017	95,000
Deductible under at risk provisions	65,000
Suspended under at risk provisions(95000-65000)	30,000
for 2018
Share of profit for 2018	55,000
Deductible under at risk provisions(carried forward from 2017)	30000
for Adjusted basis at 12/31/2018
Share of profit for 2018	55000
Deductible under at risk provisions	30000
Adjusted basis at 12/31/2018(55000-30000)	25000
Suspended under at risk provisions	0
No suspended loss to carry forard
For 2017(Passive rules)
Passive income for 2017	15000
Passive loss from partnership	95000
Deductible under passive loss provisions(Upto the limit of passive income)	15000
for Adjusted basis at 12/31/2017
At risk basis	65,000
Adjustment	0
Adjusted basis at 12/31/2017(65000-0)	65000

for Suspended under passive loss provisions
Carried forward from 2017	$80000
Deductibe in 2018	67000
Suspended under passive loss provisions(80000-67000)	13000
By applying both risk and passive rules
for 2017
Deductible under at risk provisions	65000
Adjusted basis at 12/31/2017	0
Suspended under at risk provisions	30000
Deductible under passive loss provisions(upto the limit of passive income)	15000
Suspended under passive loss provisions($30000-$15000)
For 2018
Deductible under at risk provisions	15000

Adjusted basis at 12/31/2017
Share of profit for 2018	55000
Deductible under at risk provisions	15000
Adjusted basis at 12/31/2018	40000
Suspended under at risk provisions	0
Deductible under passive loss  provisions	0
Suspended under passive loss provisions	0