In 2016,Ethan Contributes Cash of $50,000 and Property with a Fair

question 34

Essay

In 2016,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 2016,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 31,2016?

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Definitions:

Heroin

An illegal, highly addictive opioid drug processed from morphine and used as a recreational drug for its euphoric effects.

Nembutal

A brand name for pentobarbital, a barbiturate used primarily as a sedative or for euthanasia.

Amphetamines

Stimulant drugs that increase activity in the brain and body, often used to treat ADHD and narcolepsy.

Observations of Behavior

Observations of behavior involve systematically recording the actions of individuals or groups to analyze and understand their conduct.