Herman is a 25% partner in a partnership. His basis in his partnership interest was $20,000 on January 1, Year 1. During Year 1, Herman withdrew $6,000, and the partnership had a $(120,000) ordinary loss and $8,000 tax-exempt income. During Year 2, the partnership had $80,000 of operating income. Without regard to any partnership liabilities, what is Herman's basis in his partnership interest on December 31, Year 2?

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To calculate Hermans basis in his partnership interest on December 31 Year 2 we need ... View the full answer