Question

Rubio recently invested $17,600 (tax basis) in purchasing a limited partnership interest in which he will have no management rights in the company. His at-risk amount is $11,000. In addition, Rubio’s share of the limited partnership loss for the year is $21,800, his share of income from a different limited partnership is $6,000, and he has $41,400 in wage income and $13,700 in long-term capital gains. (Input the amount as positive value.) How much of Rubio's $21,800 loss is allowed considering only the tax-basis loss limitations?

Answer 1

The allowable loss on basis of limitation is $17,600.

Step-by-step explanation:

It is mentioned in the Schedule K-1 losses and deductions is said to be basis limitation, it include the deduction and the loss of the partners and the shareholders that they can deduct.