Alfonso began the year with a tax basis in his partnership interest of $22,000. His share of partnership liabilities at the beginning and end of the year consists of $9,000 of recourse liabilities and $2,000 of nonrecourse liabilities. During the year, he was allocated $34,000 of partnership ordinary business loss. Alfonso does not materially participate in this partnership, and he has $2,000 of passive income from other sources. a. How much of Alfonso's loss is limited by his tax basis?
Alfonso began the year with a tax basis in his partnership interest of $22,000. His share of partnership liabilities at the beginning and end of the year consists of $9,000 of recourse liabilities and $2,000 of nonrecourse liabilities. During the year, he was allocated $34,000 of partnership ordinary business loss. Alfonso does not materially participate in this partnership, and he has $2,000 of passive income from other sources. a. How much of Alfonso's loss is limited by his tax basis?
Chapter11: Invest Or Losses
Section: Chapter Questions
Problem 38P
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Alfonso began the year with a tax basis in his
a. How much of Alfonso's loss is limited by his tax basis?
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