Susan is a 40% partner in the VYZ Partnership. At the beginning of the tax year, Susans
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Susan is a 40% partner in the VYZ Partnership. At the beginning of the tax year, Susan’s basis in the partnership interest was $100,000, including her share of partnership liabilities. During the current year, VYZ reported an ordinary loss of $60,000 (before the following payments to the partners). In addition, VYZ made an ordinary distribution of $8,000 to Susan and paid partner Johna $20,000 consulting fee. At the end of the year, Susan’s share of partnership liabilities decreased by $10,000. Assuming loss limitation rules do not apply, Susan’s basis in the partnership interest at the end of the year is:
a. | $70,000. | |
b. | $2,000. | |
c. | $58,000. | |
d. | $50,000. |
Related Book For
South Western Federal Taxation 2015 Essentials of Taxation Individuals and Business Entities
ISBN: 9781285438290
18th edition
Authors: James Smith, William Raabe, David Maloney, James Young
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