In 2015, Andrewcontributedequipment with an adjusted basis of $20,000 and a FMV of $18,000 to Construction Limited

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In 2015, Andrewcontributedequipment with an adjusted basis of $20,000 and a FMV of $18,000 to Construction Limited Partnership (CLP) in return for a 3% limited partnership interest. Andrew's share of CLP income and losses for the year were as follows:

Interest..................................$ 500

Dividends..................................300

Capital gains.............................900

Ordinary loss.......................(4,325)

CLP had no liabilities. What are Andrew's initial basis, allowed losses, and ending at-risk amount?

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...
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Fundamentals Of Taxation 2016

ISBN: 9781259812774

9th Edition

Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone

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