Partnership: At-Risk Rules
On January 1, 2013, Chantel Bourke agreed to pay $120,000 to join the Tech Risk Partnership(TRP) as a limited partner. Of this amount, $40,000 was paid immediately with the balance dueon January 1, 2014. Her interest in all of the income and losses of TRP is 25 percent.The general partner of TRP has guaranteed to buy back her interest for $40,000, regardless ofits fair market value. This guarantee expires on January 1, 2015.During 2013, TRP experienced a $700,000 Net Business Loss. This was followed by a$105,000 loss in 2014. In 2015, TRP shows no profit or loss.Ms. Bourke has sufficient other sources of income to absorb any deductible losses generatedby the partnership.Required: For each of 2013, 2014 and 2015, calculate the following amounts related to Ms.Bourke's interest in TRP:The adjusted cost base at the end of the year.
The at-risk amount. The limited partnership income (loss) for the year.
The deductible income (loss) for the year.
The limited partnership loss carry forward at the end of the year.