Question

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?

Answer #1

Particulars | Amount |

Beginning basis | $ 200,000 |

Add: share | |

Loss | $ (120,000) |

Interest | $ 6,000 |

Capital gain | $ 14,000 |

Distribution | $ (20,000) |

$ 80,000 | |

Add: share of debt increase | $ 10,000 |

Ending basis | $ 90,000 |

Answer is $90,000.

Please rate.

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