Hunter has a $60,000 loss from an investment in a partnership in which he does not participate. His basis in the interest is $45,000. a.How much of the loss is disallowed by the at-risk rules? b. How much of the loss is disallowed by the passive loss rules?
Hunter has a $60,000 loss from an investment in a partnership in which he does not participate. His basis in the interest is $45,000. a.How much of the loss is disallowed by the at-risk rules? b. How much of the loss is disallowed by the passive loss rules?
Chapter11: Invest Or Losses
Section: Chapter Questions
Problem 38P
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Question
Hunter has a $60,000 loss from an investment in a partnership in which he does not participate. His basis in the interest is $45,000.
a.How much of the loss is disallowed by the at-risk rules?
b. How much of the loss is disallowed by the passive loss rules?
Transcribed Image Text:Hunter has a $60,000 loss from an investment in a partnership in which he does
not participate. His basis in the interest is $45,000.
Required:
a. How much of the loss is disallowed by the at-risk rules?
b. How much of the loss is disallowed by the passive loss rules?
a
b
Amount
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