Ellie is a 20% general partner in Calico Partnership. The partnership had ordinary income of $200,000 before any guaranteed payments. Ellie received a guaranteed payment of $50,000. She also took a cash distribution of $10,000. Ellie's tax basis in her partnership interest at the beginning of the year was $60,000. Her marginal tax rate is 24%. Ellie qualifies for the QBI deduction (partnership income allocation multiplied by 20%).

Answer the following questions:

1. What is the total amount of cash received by Ellie?

2. What is the total amount of income she will report on her tax return including her guaranteed payment?

3. What is the total amount of Ellie's taxable income (income less QBI deduction)?

4. What is Ellie's after tax cash balance?

5. What is Ellie's basis at the end of the year?

Answer rating: 100% (QA)

Calico partnership ordinary income 200000 elies payment 50000 cash distri... View the full answer