Individual: Reporting of Items from Pass-Through Entities

Question 1

What is the deductible amount for active rental real estate losses?

Answer 1

$25,000. Reduced by 50% of excess over $100,000

MFJ 12,500 Each. Reduced by 50% of excess over $50,000

Question 2

What is the passive loss treatment?

Answer 2

Offset passive gains only, unused amount carry forward

If ownership disposed: Take all the loss up to amount of basis

Question 3

What is the S-Corp loss deduction limited to?

Answer 3

Limited to amounts “At risk” in trade/business (Basis + any loans made to S-Corp)

Question 4

How is S-Corp - Gross income distributed?

What is the formula?

Answer 4

Include pro-rata share of nonseparately/separately stated operating income/expense
Formula:
Beginning basis
+ Share of operating income
- Share of distributions
If distributions do not exceed basis, do not include in income

Question 5

How is Partnership income calculated?

Answer 5

(operating income - guaranteed payment)
x Partner’s % share

Add guaranteed payment & any capital gain