Taxpayer has beginning basis of $100,000 in their 20% partnership interest. During the tax year, the partnership reports ordinary income of $500,000 and total distributions of $1.25M. Assuming there are no special allocations, how much distribution in excess of basis, if any, will Taxpayer recognize? Taxpayer has beginning basis of $100,000 in their 20% partnership interest. During the tax year, the partnership reports ordinary income of $500,000 and total distributions of $1.25M. Assuming there are no special allocations, how much distribution in excess of basis, if any, will Taxpayer recognize? 

$1.25M 

$250,000 

$50,000 

$0

Answer rating: 100% (QA)

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