[carpeCPA]

I can’t copy and paste the question and Becker’s academic support team just confused me. Anyone using 2013 Becker, I could really use your help! (My REG exam is tomorrow…. ahhh!)

I need help understanding why the Wonderland Resorts loss can offset the income from Technology Plus. Isn’t it passive to the taxpayer because he is a 10% limited partner? If he were a general partner in an LLP, it would be ordinary income, right?

Are we supposed to assume the income from the S corp is passive too? If so, how are we supposed to determine when an S interest is passive vs. active?

REG - 93 (Jul'13)
FAR - 97 (Dec '13)
AUD - 99 (May '14)
BEC - Jul '14

Becker Self Study/Ninja Notes/Ninja Audio/Ninja MCQ/Wiley Test Bank/Wiley Book

[carpeCPA]

Nobody?

REG - 93 (Jul'13)
FAR - 97 (Dec '13)
AUD - 99 (May '14)
BEC - Jul '14

Becker Self Study/Ninja Notes/Ninja Audio/Ninja MCQ/Wiley Test Bank/Wiley Book

[lbi18]

I was confused by this as well. After looking on R1-44, it says (at the very top), that passive income includes “rental activities, interests in limited partnerships, S Corporations, and most tax shelters.”

So, I guess that means any interest in an S Corp is subject to passive activity loss limitations, just like that of a limited partner.

FAR - 85
AUD - 99
REG - 85
BEC - 10/4/13 (Waiting)

Using Becker Self-Study

[mmp3]

Yes, S-corp income is always considered passive for income tax purposes. It is also not subject to self employment tax. Good luck tomorrow!

FAR 92 (2/27/13)
AUD 99 (4/18/13)
REG 93 (7/5/13)
BEC 92 (8/12/13)

Becker Self Study

[carpeCPA]

Thank you!!!

REG - 93 (Jul'13)
FAR - 97 (Dec '13)
AUD - 99 (May '14)
BEC - Jul '14

Becker Self Study/Ninja Notes/Ninja Audio/Ninja MCQ/Wiley Test Bank/Wiley Book

[Author]

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