Module 4 Chapter 15 Homework Saved 5 Required information The following informat

Question

Module 4 Chapter 15 Homework Saved 5 Required information The following information applies to the questions displayed below. Part 2 of 2 Damarcus is a 50 percent owner of Hoop (a business entity). In the current year, Hoop reported a $100,000 business loss. Answer the following questions associated with each of the following alternative scenarios. (Leave no answer blank. Enter zero if applicable.) points 04:23:24 b. Hoop is organized as an LLC taxed as a partnership. Fifty percent of Hoop's loss is allocated to Damarcus. Damarcus works full-time for Hoop (he is not considered to be a passive investor in Hoop). Damarcus has a $20,000 basis in his Hoop ownership interest and he also has a $20,000 at-risk amount in his investment in Hoop. Damarcus does not report income or loss from any other business activity investments. How much of the $50.000 loss allocated to him by Hoop is Damarcus allowed to deduct this year? eBook Print References

Explanation / Answer

Answer is $20000

As per the basis and at risk amount for D is estimated to be $20000 he can deduct only $20000 this year

even though the H's loss of $ 50000 is allocated to him

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