McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 6

Rubio recently invested $20,000 (tax basis) in purchasing a limited partnership interest.His at-risk amount is $15,000.In addition, Rubio's share of the limited partnership loss for the year is $22,000, his share of income from a different limited partnership was $5,000, and he had $40,000 in wage income and $10,000 in long-term capital gains.a.How much of Rubio's $22,000 loss can he deduct considering only the tax basis limitation?
b.How much of the loss from part a.can Rubio deduct under the at-risk limitations?
c.How much of Rubio's $22,000 loss from the limited partnership can he deduct in the current year considering all limitations?