贵金属投资技术分析英文版 (21)(精品·公开课件).pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * Portfolio Investments Summary Portfolio Investment Expenses Passive Investment Income and Losses Passive Investments Typically an investment in a partnership, S corporation, or direct ownership in rental real estate. Ordinary income from these investments is taxable annually as it is earned. Ordinary losses may be deducted currently if able to overcome: Tax basis limitation At-risk limitation Passive loss limitation Tax Basis Limitation Losses may not exceed an investor’s tax basis in the activity. Excess loss carried over until event occurs to create more tax basis. Increases to tax basis Cash invested Share of undistributed income Share of debt Decreases to tax basis Cash distributions Prior year losses At-Risk Limitation Losses may not exceed an investor’s amount at-risk in the activity. Excess loss carried forward until event occurs to create additional amount at-risk. At-risk amount calculated like tax basis except: May not include investor’s share of debt she is not responsible to repay However, usually include investor’s share of mortgage debt secured by real estate because it is “qualified nonrecourse financing” Tax Basis and At-Risk Limitation Question Lon purchased an interest in a limited liability company (LLC) for $50,000 and the LLC has no debt. Lon’s share of the loss for the current year is $70,000. How much of the loss is limited by his tax basis? How much of the loss is limited by his at-risk amount? Tax Basis and At-Risk Limitation Solution Lon’s tax basis is $50,000 consisting his $50,000 investment As a result, $20,000 of his $70,000 loss is limited by his tax basis leaving $50,000 of loss. His at-risk amount is also $50,000 because the LLC does not have any debt. Thus, there is no additional loss limited by Lon’s at risk amount. Passive Activity Limitation Applied after tax basis and at-risk limitations. Losses from “passive activities” may only be deducted to the extent the taxpayer