Jack’s basis in JTD Partnership interest is $200,000 at the beginning of the tax year. His share of partnership items is as follows: ($120,000) ordinary loss, $6,000 tax-exempt interest and a $14,000 long-term capital gain. In addition, he received a $20,000 cash distribution during the year; and, his share of partnership debt increased by $10,000. What is Jack’s ending basis in his partnership interest?
|Beginning basis||$ 200,000|
|Capital gain||$ 14,000|
|Add: share of debt increase||$ 10,000|
|Ending basis||$ 90,000|
Answer is $90,000.
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