Richard has a 50% interest in a partnership, and he materially participates in the partnership's business. Richard's adjusted basis in the partnership was $60,000 at the beginning of the year, including his share of partnership liabilities. There were no distributions to Richard during the year. During the current year, the partnership borrowed $160,000 from a local bank to purchase equipment
needed in the business. All of the partners are personally liable for all partnership debts. The partnership incurred a $320,000 loss this year. What amount can Richard claim as a loss from the partnership on his individual tax return this year?
A) $60,000
B) $80,000
C) $140,000
D) $160,000
C) $140,000
A loss can be claimed to the extent of the partner's basis. Original basis of $60,000 plus $80,000 (50% of increase in debt of $160,000) = $140,000. The remaining loss may be carried over.
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A) the receiver's preference and level of expertise B) the ability of the channel to showcase your technical expertise C) your own communication channel preferences D) the ability of the channel to make your company look cutting edge
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Answer the following statement true (T) or false (F)
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