The TVX Partnership, formed in 2017, owns several office rental buildings. Selected year-end information for its first
Question:
The TVX Partnership, formed in 2017, owns several office rental buildings. Selected year-end information for its first five years reveals the following:
2017 | 2018 | 2019 | 2020 | 2021 | |
Recourse liabilities | $100,000 | $120,000 | $130,000 | $150,000 | $160,000 |
Nonrecourse liabilities | 500,000 | 400,000 | 300,000 | 250,000 | 200,000 |
Net income (or loss) | (300,000) | (200,000) | (110,000) | (40,000) | 70,000 |
Cash distributed to partners | 50,000 | 100,000 | 150,000 | 100,000 | 0 |
All liabilities were incurred by the partnership. Partner A contributed property with a basis of $50,000 and a market value of $75,000 in exchange for her partnership interest. Nine other partners contributed $75,000 cash each. A is a general partner and the other nine partners are limited partners. They share profits and losses equally, 10% each. Prepare a schedule showing (a) the distributive share of profits and losses, and (b) the outside basis of the partnership interest at the end of each year for the general partner and for one of the limited partners.
Expert Answer:
A As Partner A is a general partner heshe will be managing the daily activities and ... View the full answer
