Question

In: Accounting

During the year, Janice invested $10,000 (tax basis and at-risk basis) into XYZ limited partnership (a...

During the year, Janice invested $10,000 (tax basis and at-risk basis) into XYZ limited partnership (a passive investment). Her share of the limited partnership income for the year was $6,000, and Janice received a $5,000 distribution from XYZ limited partnership.

During the year, Janice also invested $6,000 (tax basis and at-risk basis) into ABC limited partnership (a passive investment). Her share of the limited partnership loss for the year was $7,000, and Janice received a $1,500 distribution from ABC limited partnership.

What will be the net income/loss reported on Schedule 1 line 5 of a 2019 tax return? Will there be a carry forward?

Solutions

Expert Solution

Janice made an investment of passive activity which is at a tax basis and at-risk basis and incurred net loss of $1000. it is any how not taxable but the loss are carry forwarded.


Related Solutions

Rubio recently invested $20,000 (tax basis) in purchasing a limited partnership interest. His at-risk amount is...
Rubio recently invested $20,000 (tax basis) in purchasing a limited partnership interest. His at-risk amount is $15,000. In addition, Rubio’s share of the limited partnership loss for the year is $22,000, his share of income from a different limited partnership 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 allowed considering only the tax-basis loss limitations? b. How much of the loss from part (a) is...
Rubio recently invested $25,500 (tax basis) in purchasing a limited partnership interest. His at-risk amount is...
Rubio recently invested $25,500 (tax basis) in purchasing a limited partnership interest. His at-risk amount is $18,850. In addition, Rubio’s share of the limited partnership loss for the year is $29,150, his share of income from a different limited partnership is $5,825, and he has $45,500 in wage income and $12,750 in long-term capital gains. c. How much of Rubio’s $29,150 loss from the limited partnership can he deduct in the current year considering all limitations?
XY Partnership has the following assets and liabilities at year-end. The book basis and tax basis...
XY Partnership has the following assets and liabilities at year-end. The book basis and tax basis are the same amount. Assets Basis Value Machine $ 10,000 $ 5,000 Building $80,000 $ 82,000 Note 1 $ 3,000 $ 3,000 Note 2 $90,000 $ 90,000 Note 1 is a nonrecourse note attached to the machine; Note 2 is a nonrecourse note attached to the building. What is the amount of the partnership's minimum gain? A. $0 B. $3,000 C. $6,000 D. $10,000
A partnership has the following assets and liabilities. The book basis and tax basis are the...
A partnership has the following assets and liabilities. The book basis and tax basis are the same amount. Aseet                                         Basis                              Value Building                                    90,000                            92,000 Accounts payable                       8,000                             8,000 Note Payable                            85,000                           85,000 Total                                        183,000                         185,000 If the note payable is a nonrecourse mortgage on the building, what is the amount of the minimum gain?
Jenna began the year with a tax basis of $41,000 in her partnership interest. Her share...
Jenna began the year with a tax basis of $41,000 in her partnership interest. Her share of partnership debt consists of $11,000 of recourse debt and $9,000 of nonrecourse debt at the beginning of the year and $11,000 of recourse debt and $11,000 of nonrecourse debt at the end of the year. During the year, she was allocated $52,000 of partnership ordinary business loss. Jenna does not materially participate in this partnership and she has $3,000 of passive income from...
Partner Z of the XYZ partnership receives a liquidating distribution of the following: Basis                           
Partner Z of the XYZ partnership receives a liquidating distribution of the following: Basis                                  FMV Cash    $40,000                       $40,000 Inventory    $30,000                       $45,000 Unrealized receiv. $50,000                       $45,000 1. Z’s basis in her partnership interest was $95,000. What is her gain or loss and the bases of the assets distributed to her?    2. Assume Z’s basis in her partnership interest was $130,000. What is her gain or loss and the bases of the assets distributed to her?
A partnership has the following assets. The book basis and tax basis are the same amount...
A partnership has the following assets. The book basis and tax basis are the same amount Asset. Basis. Value Cash. 3000. 3000 Machine 10000. 10000 Accounts payable 8000. 8000 Note payable. 15000. 15000 Total 36000. 36000 If the note payable is a recourse mortgage on the machine wat is te amount of minimum gain A. 0 B. 5000 C. 10000 D. 13000
Ming recently invested $11,000 in purchasing a limited partnership interest. His share of the debt in...
Ming recently invested $11,000 in purchasing a limited partnership interest. His share of the debt in the partnership is $3,000, but he is not personally responsible for paying the debt in the event the partnership cannot pay it. In addition, Ming’s share of the limited partnership loss for the year is $12,000, his share of income from a different limited partnership was $3,000 and he had $7,000 of dividend income from the stock he owns. a. What is Ming’s tax...
Ming recently invested $11,000 in purchasing a limited partnership interest. His share of the debt in...
Ming recently invested $11,000 in purchasing a limited partnership interest. His share of the debt in the partnership is $3,000, but he is not personally responsible for paying the debt in the event the partnership cannot pay it. In addition, Ming’s share of the limited partnership loss for the year is $12,000, his share of income from a different limited partnership was $3,000 and he had $7,000 of dividend income from the stock he owns. a. What is Ming’s tax...
Quinn is a 15% partner of QUI Partnership. His basis was $10,000. In a complete liquidation...
Quinn is a 15% partner of QUI Partnership. His basis was $10,000. In a complete liquidation of his interest in the partnership, Quinn receives: Cash of $2,000; Three pieces of land worth $2,500 each with adjusted bases of $2,200; $1,800; and $3,000. Which of the following is correct (several answers possible)?   Quinn's basis in the partnership after the distribution is zero. Quinn's basis in the partnership after the distribution is 1,000. Quinn recognizes a loss of 1,000. Quinn recognizes a...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT