In 2014,Ethan Contributes Cash of $50,000 and Property with a Fair

question 9

Essay

In 2014,Ethan contributes cash of $50,000 and property with a fair market value of $100,000 and basis of $20,000 in exchange for a 20% interest in the EFP Partnership.The partnership is not a passive activity.For 2014,his share of partnership items were an ordinary loss of $80,000,interest income of $2,000,dividends of $5,000,and capital gains of $4,000.How much of the current year loss is deductible by Ethan and what is Ethan's at-risk amount on December 31,2014?

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Definitions:

Discounts

Reductions in the regular price of goods or services, often to attract consumers or to reward loyal customers.

Six-Figure Accuracy

A numerical precision level that includes six digits of meaningful data.

Superscript

A character, number, or symbol written or printed above the line of text, often used for citations, footnotes, or mathematical powers.

Six-Figure Accuracy

A term indicating a level of precision or accuracy to the nearest hundred thousand in numerical calculations or measurements.