How much of rubio loss is allowed


Assignment task: Rubio recently invested $24,500 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is $18,150. In addition, Rubio's share of the limited partnership loss for the year is $27,850, his share of income from a different limited partnership is $5,675, and he has $44,500 in wage income and $12,250 in long-term capital gains.

a. How much of Rubio's $27,850 loss is allowed considering only the tax-basis loss limitations?

b. How much of Rubio's $27,850 loss is allowed under the at-risk limitations?

c. How much of Rubio's $27,850 loss from the limited partnership can he deduct in the current year considering all limitations?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: How much of rubio loss is allowed
Reference No:- TGS03425948

Expected delivery within 24 Hours