Scenario :
Thomas is a partner in a partnership. The partnership incurred a net loss of $ for the year, and Thomas's share of the loss is $ Thomas's initial basis in the partnership was $ He received a $ cash distribution from the partnership. Thomas's other income includes:
Wages: $
Interest and Dividend Income: $
Itemized Deductions: $
Allowable deduction for selfemployment tax: None
How much of the partnership loss can Thomas deduct considering his basis, the atrisk limitations and passive activity loss rules?
How does the distribution affect his basis?
Calculate Thomas's Adjusted Gross Income AGI
What is Thomas's Taxable Income?
What is Thomas's Total Tax Liability?
