[jujubetree]

R4-50 example on the book

partner’s tax basis in partnership=33

partner’s at risk amount=25

allocable loss from partnership=35

the 2K loss is carried forward and can only be used when additional basis is created

8K loss limited by at-risk limitation until the partner generates additional at-risk amounts to utilize the loss

my question is : what amount should the partner recognise in his gross income? ordinary loss 25 or 33?

thanks:)

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[Tux]

I believe it's 25, since it's the lower of the two choices. The rule is that you have to pass the 3 limitations, so you'd have to pick the lowest limit.

Which MCQ is this from?

I'm studying REG with Becker too.

FAR - 86 - 2/27/14
AUD - 75 - 5/29/14
BEC - 80 - 8/31/14
REG - 89 - 2/27/15
Praise Jesus! I'm done!!

Study resources:
Becker
Wiley test bank

[jujubetree]

It's just example from Becker,R4-50

live fast die young
look good feel good

[Author]

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