What problems will d encounter in deducting net loss

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D invested $100,000 in an equipment leasing LLC. He was to be allocated all of the depreciation for the first five years and 40% of the net income before depreciation. The venture borrowed $400,000, non-recourse debt? D's depreciation for the first year was $200,000 and his share of the net income before depreciation was $60,000.

1. What problems will D encounter in deducting his net loss from the LLC for the first year?

2. Same as a., except the LLC leases real estate, rather than equipment.

Reference no: EM131797510

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