In 2015, Nigel Contributes Cash of $10,000 in Exchange for a 20

question 26

Essay

In 2015, Nigel contributes cash of $10,000 in exchange for a 20% interest in the NDP Partnership. The partnership is not a passive activity. For 2015, the partnership had 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 Nigel and what is Nigel's at-risk amount on December 31, 2015?

---

Definitions:

Periodic Interaction

Interaction that occurs at regular, defined intervals rather than continuously.

Trust Building

The process of developing confidence and reliability in relationships between individuals or parties.

Team Building

A collective term for various types of activities aimed at enhancing social relations and defining roles within teams, often involving collaborative tasks.

Trusted

Considered reliable or dependable.