[jeff]

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Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[UCMCPA]

Question.. Taxpayer has a basis in partnership of 60,000 in which they materially participate. Taxpayer received a 20,000 distribution in the year. Partnership income for the taxpayer is a 65,000 ordinary loss and a 15,000 LT capital gain. What amount is taxpayers deductible loss?

40,000

15,000

65,000

55,000

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

Question.. Taxpayer has a basis in partnership of 60,000 in which they materially participate. Taxpayer received a 20,000 distribution in the year. Partnership income for the taxpayer is a 65,000 ordinary loss and a 15,000 LT capital gain. What amount is taxpayers deductible loss?

40,000

15,000

65,000

55,000

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Skrier]

@UCMCPA…I believe the answer is $55,000, if I remember correctly, the deductible loss is limited to the at risk amount. So 60k- 20k+ 15k= 55k.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

@UCMCPA…I believe the answer is $55,000, if I remember correctly, the deductible loss is limited to the at risk amount. So 60k- 20k+ 15k= 55k.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[UCMCPA]

I was getting confused with that 25k deductible rule for passive activities. Blah.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

I was getting confused with that 25k deductible rule for passive activities. Blah.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Skrier]

@insiyah….I am not positive on this one, but the means test states Average monthly income for the past 6 months less allowed expenses x 60. It goes on to state that if the average monthly income less expenses is less than $7,025 Chapter 7 is allowed. I am still not clear on this part.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

@insiyah….I am not positive on this one, but the means test states Average monthly income for the past 6 months less allowed expenses x 60. It goes on to state that if the average monthly income less expenses is less than $7,025 Chapter 7 is allowed. I am still not clear on this part.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Kenada]

Starting Basis is 60,000 – 65000 -20000 = (25,000)

You take the 25,000 as a gain and Basis to be zero.

Taxable loss can reduce basis to zero but below zero is not deductible

So I would say in this case taxable loss is 40,000 (60K -20K distribution = balance of 40K available to offset against 65K Loss).

I didn't take the Capital Gain because it is a separately stated item. At least this is what I would have done in the exam…

FAR 05/27/14; 786/110 - Done !

[Kenada]

Starting Basis is 60,000 – 65000 -20000 = (25,000)

You take the 25,000 as a gain and Basis to be zero.

Taxable loss can reduce basis to zero but below zero is not deductible

So I would say in this case taxable loss is 40,000 (60K -20K distribution = balance of 40K available to offset against 65K Loss).

I didn't take the Capital Gain because it is a separately stated item. At least this is what I would have done in the exam…

FAR 05/27/14; 786/110 - Done !

[Mehwish]

What is the max deduction allowed under 179? When do you begin to phase dollar for dollar?

Wiley Book says beginning 2012, Max deduction is 139000$, and phase out after 560000$. I checked the website (and ninja notes)

they say max is 500,000 and phase out at 2M

[Mehwish]

What is the max deduction allowed under 179? When do you begin to phase dollar for dollar?

Wiley Book says beginning 2012, Max deduction is 139000$, and phase out after 560000$. I checked the website (and ninja notes)

they say max is 500,000 and phase out at 2M

[Skrier]

Ok UCMCPA……curiosity…what is the correct answer, so we all get this question right on the exam 🙂

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

Ok UCMCPA……curiosity…what is the correct answer, so we all get this question right on the exam 🙂

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[UCMCPA]

@insiyah. The answer to my question is D.

@mehwish… the 2013 numbers are 500,000 and phase out begins @ 2m.. I'm not sure if they applied that to 2012 as well. Maybe jeff can enlighten us, I've seen him comment on it in another thread.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Author]

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