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.

Question

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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