Kanye contributed a piece of land (FMV $300,000 AB $200,000) in exchange for a 50 capital and profit (and loss) interest in KW Partnership KW reported the following income and expenses for the current tax year Sales revenue $700,000 1231 gain $60,000 Long term capital loss $10,000 Qualified dividends $10,000 W 2 wages paid to employees $200,000 Utilities $140,000 Rent $180,000 No distributions were made this year What is KW Partnerships ordinary business income (loss)

Question: Kanye contributed a piece of land (FMV = $300,000; AB = $200,000) in exchange for a 50% capital and profit (and loss) interest in KW

Kanye contributed a piece of land (FMV = $300,000; AB = $200,000) in exchange for a 50% capital and profit (and loss) interest in KW Partnership. KW reported the following income and expenses for the current tax year:

Sales revenue: $700,000
1231 gain: $60,000
Long-term capital loss: $10,000
Qualified dividends: $10,000
W-2 wages paid to employees: $200,000
Utilities: $140,000
Rent: $180,000

No distributions were made this year.

What is KW Partnership’s ordinary business income (loss)?

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