(Solution) - Bill owns a 5 interest in a limited partnership -(2025 Original AI-Free Solution)

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Bill owns a 5% interest in a limited partnership. The adjusted cost base of his partnership interest at the beginning of the current year was $40,000. For the current year Bill was allocated $8,000 of capital gains and $22,000 of business income from the partnership. At the end of the current year Bill had a loan from the partnership in the amount of $12,000.
Determine Bill?s at-risk amount at the end of the current year. Income Tax Act reference: ITA 96(2.2).