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Business, 06.12.2021 21:40 miyayo

Kristin Graf is trying to decide how to invest a $10,000 inheritance. one option is to make an additional investment in Rocky Road Excursions in which she has an at-risk basis of $0, suspended losses under the at-risk rules of $7,000, and suspended passive activity losses of $1,000. If Kristin makes this investment, her share of the expected profits this year will be $8,000. If her investment stays the same, her share of profits from Rocky Road Excursions will be $1,000. Another option is to invest $10,000 as a limited partner in the Ragged Mountain Winery; this investment will produce passive activity income of $9,000. Required:
Write down the letter to Kristin to review the tax consequences of each alternative. Kristin is in the 28% tax bracket.

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Kristin Graf is trying to decide how to invest a $10,000 inheritance. one option is to make an addit...
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