Daisy is a calendar year cash basis taxpayer. She owns a 50% profit and loss interest in
Question:
Daisy is a calendar year cash basis taxpayer. She owns a 50% profit and loss interest in a cash basis partnership with a September 30 yearend. The partnership’s operating income (after deducting guaranteed payments) was $120,000 ($10,000 per month) for the fiscal year ended September 30, 2013 and $144,000 ($12,000 per month) for the fiscal year ended September 30, 2014. The partnership paid guaranteed payments to Daisy of $2,000 per month during the fiscal year ended September 30, 2013 and $3,000 per month during the fiscal year ended September 30, 2014.
How will these partnership items affect Daisy’s taxable income for her year ended December 31, 2013?
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon