Meredith has a 40 percent interest in the assets and income of the Gantt Partnership, and the basis in her partnership interest is $60,000 at the beginning of 2020. During 2020, the partnership's net loss is $45,000 and Meredith's share of the loss is $18,000. Also, Meredith receives a cash distribution from the partnership of $8,000 on June 30, 2020.

a. Indicate the amount of income or loss from the partnership that should be reported by Meredith on her 2020 individual income tax return.
$ fill in the blank

b. Calculate Meredith's basis in her partnership interest at the end of 2020.
$ fill in the blank

Answer rating: 100% (QA)

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