Question: Can someone help me fix this answer? Im not sure what I am doing wrong. I looked into ordinary income versus guarantee payment but could
Can someone help me fix this answer?
Im not sure what I am doing wrong. I looked into ordinary income versus guarantee payment but could not figure this out.
Wayne has a beginning basis in a partnership of $46,000. His share of income and expense from the partnership consists of the following amounts:
| Ordinary income | $86,000 |
| Guaranteed payment | 24,000 |
| Long-term capital gain | 31,000 |
| 1231 gain | 8,600 |
| Charitable contributions | 4,000 |
| 179 expense | 36,000 |
| Cash distribution | 12,000 |
B. Calculate Waynes basis at the end of the year.
| b. | Beginning Basis | $46,000 |
| Income | 24,000 | |
| LTCG | 31,000 | |
| 1231 Gain | 8,600 | |
| Charitable Contribution | -4,000 | |
| Section 179 | -36,000 | |
| Cash Distribution | -12,000 | |
| Ending Basis | 57,600 |
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