Can you help me with this memorandum?

Practice Set

For the questions below, draft a one-page memorandum, providing answers to the questions supported

by the research authority indicated. Provide citations to the authority used.

Marla Simone began 2018 with a tax basis in her partnership interest of $62,000. During the year, she

was allocated $20,000 of partnership ordinary business income, $67,000 of section 1231 losses, and

$28,000 of short-term capital losses. Marla received a cash distribution of $50,000.

a. Related to these allocations, what items will Marla actually report on her tax return for 2018?

[Hintsee Treasury Regulation section 1.704-1(d) and Rev. Rul. 66-94]

b. If any deductions or losses are limited, what are the carryover amounts and what is their character?

[Hintsee Treasury regulation section 1.704-1(d)]

______________________________________________________________________

The format of the memorandum should be as follows: -

MEMORANDUM TO FILE

Client Name: __________

Prepared by J&J Accounting

Facts

Tax issue(s)

Conclusion, with research authority