[qwerty113]

Becker Question –

In the current year, TP reports the following items;

Salary $50,000

Income from Partnership A, materially participate $50,000

Passive Activity loss from Partnership B $(40,000)

During the year, the TP disposed of the interest in P-ship B, which had a suspended loss carryover of $10,000 from Prior years. What’s the TP’s AGI for the current year?

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Answer(Becker):

Salary $50,000

+ Income from P-ship A $20,000 @@@@@@

– PAL from P-ship B $(40,000)

– Loss C/O from P-ship B $(10,000)

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AGI $20,000

@@@ The answer says, only $20,000 should be included in TP’s Gross Income.

Can you tell me why? That’s the only part I am missing.

Thanks in advance and Good luck to you.

[SeattleAccountant]

@qwerty, can you post the entire problem & question?

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[Author]

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