Laura invests as a limited partner in a real estate partners

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Laura invests as a limited partner in a real estate partnership (Pship I) by contributing $30,000 to the partnership. There are nine limited partners and one general partner in the partnership. In June of Year 1, the partnership uses the $300,000 contributed to purchase an office building worth $1,500,000. The partnership obtains a non-recourse loan to cover the $1,200,000 balance.

Laura has also contributed $20,000 to another limited partnership (Pship 2) with nine other partners. The partnership has purchased rental property worth $100,000. Since Laura has experience as a bookkeeper, she offers to manage the books for the rental property. In Years 1 and 2, the partnership has a loss of $15,000.

How much depreciation will the Pship 1 take on the building in years 1 and 2?

How much of a deduction will Laura be entitled to take in years 1 and 2 from Pship 1?

How much of a deduction will Laura be entitled to take in years 1 and 2 from Pship 2?

Reference no: EM13553203

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