Gray is a 50% partner in Fabco Partnership. Grays tax basis in Fabco on January 1, year
Question:
Gray is a 50% partner in Fabco Partnership. Gray’s tax basis in Fabco on January 1, year 4, was $5,000. Fabco made no distributions to the partners during year 4 and recorded the following.
What is Gray’s tax basis in Fabco on December 31, year 4?
a. $21,000
b. $16,000
c. $12,000
d. $10,000
Transcribed Image Text:
Ordinary income Tax-exempt income $20,000 8,000 Portfolio income 4,000
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Greys tax basis must be increased by His share in ordi...View the full answer
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Related Book For
South-Western Federal Taxation 2022 Essentials Of Taxation Individuals And Business Entities
ISBN: 9780357519431
25th Edition
Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young, David M. Maloney
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