Investment Income Assignment | Homework For You

Bryan noticed that the schedule k-1 he just received from abc partnership included 20,000 ordinary business loss allocation. His tax basis in abc at the beginning of the most recent tax year was $10,000. Comparing the schedule k-1 he recently received from abc with the schedule k-1 he received from abc last year, bryan noted that his share of abc partnership debt changed as follows,: recourse debt increased from 0 to 2,000, qualified nonrecourse debt increased from 0 to 3000, and nonrecourse debt increased from 0 to 3000. Finally the schedule k-1 bryan recently received from abc reflected 1000 cash contribution he made to abc during the year.Homework For You

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Bryan is not a material participant in abc, and he reeived 10000 of passive income from another investment during the same year.

How much of the 20000 loss from abc can bryan deduct currently?Get Finance homework help today

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