Jerome has a 10% interest in a limited partnership. The adjusted cost base of Jerome's partnership interest at the beginning of 20X0 was $30,000. During 20X0 the partnership reported a $10,000 taxable capital gain and $150,000 in
business income. At the end of 20X0 Jerome had an outstanding loan balance of
$10,000 with the partnership.
Required:
Determine Jerome's 'at-risk amount' at the end of 20X0.

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The Answer of Jerome has a 10% interest in a limited partnership. The adjusted cost base of Jerome's partnership interest at the beginning of 20X0 was $30,000. During 20X0 the partnership reported a $10,000 taxable capital gain and $150,000 in
business income. At the end of 20X0 Jerome had an outstanding loan balance of
$10,000 with the partnership.
Required:
Determine Jerome's 'at-risk amount' at the end of 20X0.

Jerome Has a 10% Interest in a Limited Partnership