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                     ____________________

(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

1	AT Risk Rules only
	For 2017
	Deductible under at risk provisions	$65,000	(upto the limit of at risk basis)
	Adjusted basis at 12/31/2017
	At risk basis	$65,000
	Loss for 2017-upto the limit of basis	$65,000
	Adjusted basis at 12/31/2017	$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	$30,000
	For 2018
	Share of profit for 2018	$55,000
	Deductible under at risk provisions	$30,000	(carried forward from 2017)
	Adjusted basis at 12/31/2018
	Share of profit for 2018	$55,000
	Deductible under at risk provisions	$30,000
	Adjusted basis at 12/31/2018	$25,000
	Suspended under at risk provisions	$0
	There is no loss to be suspended and carried forward to future year
2	Passive Rules only
	For 2017
	Passive income for 2017	$15,000
	Passive loss from partnership	$95,000
	Deductible under passive loss provisions	$15,000	(Upto the limit of passive income)
	Adjusted basis at 12/31/2017
	At risk basis	$65,000
	Adjustment	$0
	Adjusted basis at 12/31/2017	$65,000
	Suspended under passive loss provisions
	Share of loss for 2017	$95,000
	Deductible under passive loss provisions	$15,000
	Suspended under passive loss provisions	$80,000
	For 2018
	Share of profit for 2018	$55,000
	Passive income for 2018	$12,000
	Total Passive income	$67,000
	Deductible under passive loss provisions	$67,000	(Upto the limit of passive income)
	Adjusted basis at 12/31/2018
	At risk basis	$65,000
	Loss for 2017-upto the limit of basis	$0
	Adjusted basis at 12/31/2018	$65,000
	Suspended under passive loss provisions
	Carried forward from 2017	$80,000
	Deductibe in 2018	$67,000
	Suspended under passive loss provisions	$13,000
3	Apply both at risk and passive rules
	For 2017
	Deductible under at risk provisions	$65,000
	Adjusted basis at 12/31/2017	$0
	Suspended under at risk provisions	$30,000
	Deductible under passive loss provisions	$15,000	(upto the limit of passive income)
	Suspended under passive loss provisions	$15,000	($30000-$15000)
	For 2018
	Deductible under at risk provisions	$15,000
	Adjusted basis at 12/31/2017
	Share of profit for 2018	$55,000
	Deductible under at risk provisions	$15,000
	Adjusted basis at 12/31/2018	$40,000
	Suspended under at risk provisions	$0
	Deductible under passive loss provisions	$0
	Suspended under passive loss provisions	$0