Molly grey single acquired a 30 percent limited partnership


Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $58,500. At the beginning of year 1, Molly has tax basis and an at-risk amount of $21,500. In year 1, Beau Geste incurs a loss of $187,000 and does not make any distributions to the partners.

In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $62,800. This includes $14,500 of passive income from other passive activities.

In year 2, Beau Geste earns income of $34,000. In addition, Molly contributes an additional $30,500 to Beau Geste during year 2. Molly's AGI in year 2 is $68,100 (excluding any income or loss from Beau Geste). This amount includes $10,860 in income from her other passive investments.

a. Based on the above information, complete the following tables: (Leave no answers blank. Enter zero if applicable.)

b. What are the cumulative total passive suspended losses at the end of year 2?

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Financial Accounting: Molly grey single acquired a 30 percent limited partnership
Reference No:- TGS01690883

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