Q1 Decker has a $1,000 loss from an activity in which he materially participates. He has $500 of basis in the activity and his at risk basis is $300. How much of the $1,000 loss may Decker deduct against ordinary income ? Q2 Hope and Joy formed a partnership by each contributing $3,000. This year, the partnership borrowed $60,000 as a nonrecourse loan. The loan is considered qualified nonrecourse debt. Each partner took a $1,000 distribution this year. What is each partner's at-risk amount at the end of the year please answer 1 ,2
Q1 Decker has a $1,000 loss from an activity in which he materially participates. He has $500 of basis in the activity and his at risk basis is $300. How much of the $1,000 loss may Decker deduct against ordinary income ? Q2 Hope and Joy formed a partnership by each contributing $3,000. This year, the partnership borrowed $60,000 as a nonrecourse loan. The loan is considered qualified nonrecourse debt. Each partner took a $1,000 distribution this year. What is each partner's at-risk amount at the end of the year please answer 1 ,2
Chapter2: Gross Income And Exclusions
Section: Chapter Questions
Problem 30MCQ
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Q1 Decker has a $1,000 loss from an activity
in which he materially participates. He has
$500 of basis in the activity and his at risk
basis is $300. How much of the $1,000 loss
may Decker deduct against ordinary income ?
Q2 Hope and Joy formed a partnership by
each contributing $3,000. This year, the
partnership borrowed $60,000 as a
nonrecourse loan. The loan is considered
qualified nonrecourse debt. Each partner took
a $1,000 distribution this year. What is each
partner's at-risk amount at the end of the year please answer 1 ,2
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