The following information applies to the questions displayed below Juan Diego began the year with a tax basis in his partnership interest of $50,000 During the year, he was allocated $20,000 of partnership ordinary business income, $70,000 of 1231 losses, and $30,000 of short-term capital losses and received a cash distribution of $50,000 .

a. What items related to these allocations does Juan Diego actually report on his tax return for the year? \r\n

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

Answer rating: 100% (QA)

a According to Rev Rul 669419661 CB 166Juan Diego should increase his basis first by his ... View the full answer