In 2015, Ethan Contributes Cash of $50,000 and Property with a Fair

question 48

Essay

In 2015, 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 2015, 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, 2015?

---

Definitions:

Consumer Control

The degree to which consumers influence how a product or service is created, distributed, and consumed.

Direct Marketing

A method of marketing that communicates directly with the target customer through various mediums, including mail, email, and telephone, to generate a response or transaction.

Product Sampling

Product sampling is a marketing tactic that involves giving potential customers a trial size of a product free of charge in order to introduce it and encourage purchase.

Social Media

Platforms and websites that enable users to create and share content or participate in social networking.