Abby Is a Limited Partner in a Limited Partnership

question 77

Essay

Abby is a limited partner in a limited partnership. Her basis in the partnership interest is $80,000 with an at-risk basis of $75,000. Abby's share of the partnership loss for the tax year is $90,000. She reports other income of $275,000 from her job as a controller. How much of the $90,000 can Abby offset against her other income of $275,000? What happens to any balance that cannot be deducted in the current tax year?

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Definitions:

Fraud

Intentional deception or misrepresentation made by a person or entity to gain an unfair advantage or to harm another party.

Labour-Related Legislation

Laws and regulations governing employment relationships, workplace safety, minimum wage, labor rights, and other aspects of work and employment.

British Columbia

A province in Canada known for its natural beauty, including mountains, forests, and the Pacific coastline.

Federal Government

The national government of a federated state, which often holds the highest level of authority over legal and administrative matters within its territory.