A number of years ago, Lee acquired a 20% interest in the BlueSky Partnership for $60,000. The partnership was profitable through 2012, and Lee's amount at risk in the partnership interest was $120,000 at the beginning of 2013. BlueSky incurred a loss of $400,000 in 2013 and reported income of $200,000 in 2014. Assuming that Lee is not a material participant, how much of his loss from BlueSky Partnership is deductible in 2013 and 2014? Consider the at-risk and passive loss rules.
If an amount is zero, enter "0".
Lee's share of BlueSky's loss in 2013 is $( ) . Of this loss, $( ) can be deducted under the at-risk rules, and $( ) can be deducted under the passive loss rules. In 2014, he may deduct $( ) of his suspended loss against the passive income. This leaves a $( ) suspended loss at the end of 2014.
2. Ida, who has AGI of $80,000 before considering rental activities, is active in three separate real estate rental activities. Ida has a marginal tax rate of 28%. She has $12,000 of losses from Activity A, $18,000 of losses from Activity B, and income of $10,000 from Activity C. She also has $2,100 of tax credits from Activity A.
Calculate her deductions and credits allowed and the suspended losses and credits.
a. Ida's deductions (her utilized loss) total $( )
b. Her suspended loss is $( ) .
c. After deducting the loss, Ida has available a deduction equivalent of $ ( ).
d. Her utilized credit is $ , and her suspended credit is $( )