This year, individual X and individual Y formed XY Partnership. X contributed $50,000 cash, and Y contributed

Question:

This year, individual X and individual Y formed XY X contributed $50,000 cash, and Y contributed business assets with a $50,000 FMV. Y’s adjusted basis in these assets was only $10,000. The agreement provides that income and loss will be divided equally between the two partners. operations for the year generated a $42,000 loss. How much loss may each partner deduct currently, and what basis will each partner have in her interest at the beginning of next year? 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...