In 2021, Lena invests $30,000 for a 20% limitedpartnership interest in an activity in which she isNOT a material participant. Lena's share of thepartnership losses is $40,000 in 2021. Herincome consists of income from her medicalpractice in the amount of $250,000 and $4,000from another passive activity.(a) How much loss from the activity is allowableunder the at-risk rules?(b) How much loss from the activity isdeductible under the passive loss rules?

Leena is not a material participant in the partnership. It means she is not…

Answered: n 2021 Lena invests $30.000 for a 20%…

Business

Accounting

n 2021 Lena invests $30.000 for a 20% limited

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

In 2021, Lena invests $30,000 for a 20% limited
partnership interest in an activity in which she is
NOT a material participant. Lena's share of the
partnership losses is $40,000 in 2021. Her
income consists of income from her medical
practice in the amount of $250,000 and $4,000
from another passive activity.
(a) How much loss from the activity is allowable
under the at-risk rules?
(b) How much loss from the activity is
deductible under the passive loss rules?

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