Explore BrainMass

Explore BrainMass

    AGI and partnerships: calculate Teresa's AGI

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    9. Teresa, an attorney, earns $300,000 from her practice. During the year, she paid $50,000 to acquire a 20% interest in a partnership that produces a $200,000 loss ($40,000 distributive share to Teresa). She also receives $35,000 in interest and dividends on other investments. What is Teresa's AGI if she is a material participant in the partnership? What is her AGI if she does not participate in the partnership?

    a. $295,000 if material and $295,000 if she does not participate
    b. $295,000 if material and $335,000 if she does not participate
    c. $285,000 if material and $335,000 if she does not participate
    d. $335,000 if material and $335,000 if she does not participate

    © BrainMass Inc. brainmass.com June 3, 2020, 8:36 pm ad1c9bdddf
    https://brainmass.com/business/accounting/144870

    Solution Preview

    AGI calculation

    $300,000 self employment income
    $35,000 interest and dividends
    ($40,000) partnership loss

    $295,000 AGI, if material participant

    $40,000 passive ...

    Solution Summary

    The solution discloses the full calculation to determine AGI including notes in explanation.

    $2.19

    ADVERTISEMENT