Nareh began the year with a tax basis of $49,000 in her partnership interest. Her share of partnership liabilities consists of $4,000 of recourse liabilities and $14,000 of nonrecourse liabilities at the beginning of the year and $4,000 of recourse liabilities and $16,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $62,000 of partnership ordinary business loss. Nareh does not materially participate in this partnership, and she has $8,000 of passive income from other sources. . How much of Nareh's loss is limited by her tax basis? Loss limited by her tax basis
Nareh began the year with a tax basis of $49,000 in her partnership interest. Her share of partnership liabilities consists of $4,000 of recourse liabilities and $14,000 of nonrecourse liabilities at the beginning of the year and $4,000 of recourse liabilities and $16,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $62,000 of partnership ordinary business loss. Nareh does not materially participate in this partnership, and she has $8,000 of passive income from other sources. . How much of Nareh's loss is limited by her tax basis? Loss limited by her tax basis
Chapter21: Partnerships
Section: Chapter Questions
Problem 22CE
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Transcribed Image Text:Nareh began the year with a tax basis of $49,000 in her partnership interest. Her share of partnership liabilities consists of
$4,000 of recourse liabilities and $14,000 of nonrecourse liabilities at the beginning of the year and $4,000 of recourse
liabilities and $16,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $62,000 of
partnership ordinary business loss. Nareh does not materially participate in this partnership, and she has $8,000 of
passive income from other sources.
a. How much of Nareh's loss is limited by her tax basis?
Loss limited by her tax basis
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ISBN:
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Author:
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Publisher:
CENGAGE LEARNING - CONSIGNMENT