This year, individual X and individual Y formed XY Partnership. X contributed $57,000 cash, and Y contributed
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This year, individual X and individual Y formed XY Partnership. X contributed $57,000 cash, and Y contributed business assets with a $57,000 FMV. Y?s adjusted basis in these assets was only $11,400.The partnership agreement provides that income and loss will be divided equally between the two partners. Partnership operations for the year generated a $66,000 loss.
Required: How much loss may each partner deduct currently, and what basis will each partner have in her interest at the beginning of next year? Assume the excess business loss limitation does not apply to either X or Y. (Losses and deductions should be entered as negative numbers.
Related Book For
Principles of Taxation for Business and Investment Planning 2016 Edition
ISBN: 9781259549250
19th edition
Authors: Sally Jones, Shelley Rhoades Catanach
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