In 2016, Peppermint Patty invests $140,000 in a limited partnership that is not a passive activity (only the at-risk rules apply, pages 11-4 & 11-5 in the textbook).
During 2016, her share of the partnership loss is $82,000. In 2017, her share of the partnership loss was $74,500.
A. How much can Peppermint Patty’s deduct on her 2016 tax return?
B. What is the amount of Peppermint Patty’s at-risk basis at the end of 2016?
C. What is the amount of Peppermint Patty’s suspended losses at the end of 2016?
D. How much can Peppermint Patty deduct on 2017 tax return?
E. What is the amount of Peppermint Patty’s at-risk basis at the end of 2017?
F. What is the amount of Peppermint Patty’s suspended losses at the end of 2017?