George, a limited partner in the EFG Partnership, has a 20 interest in partnership capital, profits, and losses His basis in the partnership interest is $15,000 before accounting for events of the current year In December of the current year, the EFG Partnership repaid a $100,000 nonrecourse liabil...

What is Georges basis in his partnership interest Does the repayment of the partnership liabili ...

George, a limited partner in the EFG Partnership, has a 20% interest in partnership capital, profits, and

Question:

George, a limited partner in the EFG has a 20% interest in capital, profits, and losses. His basis in the interest is $15,000 before accounting for events of the current year. In December of the current year, the EFG repaid a $100,000 nonrecourse liability. The earned $20,000 of ordinary income this year. What tax issues should George consider with respect to reporting the results of this year’s activities for the EFG on his personal return?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...