Fred Has a 45% Profits Interest and 30% Capital Interest

question 61

Essay

Fred has a 45% profits interest and 30% capital interest in the SAP Partnership and his tax basis before considering his share of SAP's current year loss is $11,000. Included in his tax basis is a $2,600 share of recourse debt and $5,300 share of nonrecourse debt. Fred is a limited partner in SAP. He is not involved in any other activities. If SAP has a $15,000 ordinary loss for the year, how much of the loss can be deducted currently, and how much of the loss is suspended because of the tax basis, the at-risk, and the passive activity loss limitations?

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Definitions:

Social Welfare Policy

Policies that provide for the welfare or well-being of the general public, especially in terms of the distribution of income, resources, and services.

Social Worker

A professional trained to help individuals, families, and communities to enhance their well-being and address social and personal challenges.

Generalist Social Work

A practice approach providing social workers with a broad range of skills to work with clients across diverse settings.

Micro Level

An analysis or intervention focus on individual or small group interactions and dynamics.