Aiden has a 35% capital interest in the Oro Partnership and is entitled to a yearly guaranteed

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Aiden has a 35% capital interest in the Oro Partnership and is entitled to a yearly guaranteed payment of $40,000. As of January 1, 2021, Aiden’s basis in the partnership interest is $87,000. During tax year 2021, Oro recorded the following transactions.

During 2021, Aiden withdrew cash of $70,000 from Oro to help cover his living expenses. What is Aiden’s basis in his partnership interest as of January 1, 2022?

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South-Western Federal Taxation 2022 Individual Income Taxes

ISBN: 9780357519073

45th Edition

Authors: James C. Young, Annette Nellen, William A. Raabe, Mark Persellin, William H. Hoffman

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Question Posted: Jul 26, 2022 01:02 AM

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Aiden has a 35% capital interest in the Oro Partnership and is entitled to a yearly guaranteed

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Operating profit (after consideration of guaranteed payment) Interest income on City of Seattle bonds Short-term capital loss Long-term capital gain Funds borrowed from bank to provide working capital $410,000 20,000 5,000 7,000 30,000

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South-Western Federal Taxation 2022 Individual Income Taxes

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