Juan Diego began the year with a tax basis in his partnership interest of $40,000. During...
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Juan Diego began the year with a tax basis in his partnership interest of $40,000. During the year, he was allocated $32,000 of partnership ordinary business income, $90,000 of §1231 losses, and $110,000 of short-term capital losses and received a cash distribution of $40,000. (Do not round intermediate calculations.) a. What items related to these allocations does Juan Diego actually report on his tax return for the year? [Hint See Reg. §1.704-1(d)(2) and Rev. Rul. 66-94.] Section 1231 losses Short-term capital losses Amount Deducted Currently $ 17,000 Juan Diego began the year with a tax basis in his partnership interest of $40,000. During the year, he was allocated $32,000 of partnership ordinary business income, $90,000 of §1231 losses, and $110,000 of short-term capital losses and received a cash distribution of $40,000. (Do not round intermediate calculations.) a. What items related to these allocations does Juan Diego actually report on his tax return for the year? [Hint See Reg. §1.704-1(d)(2) and Rev. Rul. 66-94.] Section 1231 losses Short-term capital losses Amount Deducted Currently $ 17,000
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1 According to Rev Rul 669419661 CB 166 Juan Diego should increase his basis ... View the full answer
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
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