Steve and Jim formed a partnership on January 1 with cash contributions of $600,000 and $400,000, respectively The partners agree to share profits and losses equally The partnership immediately borrowed $200,000 What is Jim 's tax basis in his partnership interest a $300,000 b $400,000 c $500,000 d...

c 500000 In partnership taxation the entity does not pay taxation ...

Steve and Jim formed a partnership on January 1 with cash contributions of $600,000 and $400,000, respectively.

Question:

Steve and Jim formed a on January 1 with cash contributions of $600,000 and $400,000, respectively. The partners agree to share profits and losses equally. The immediately borrowed $200,000. What is Jim's tax basis in his interest?
a. $300,000
b. $400,000
c. $500,000
d. $600,000

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...