Trevor and Grace formed Travelers Partnership in 1992. They are equal partners. At the beginning of the year (2017) Trevor’s capital account is $180,000. Grace’s capital account is $290,000. The partnership recourse debt balance at the beginning of the year is $60,000. Trevor’s outside basis at the beginning of the year is $120,000. Grace’s outside basis at the beginning of the year is $140,000. At the end of the year Traveler’s recourse debt balance is $22,000. The partnership debt is shared equally between the partners. Below is additional information regarding Travelers activities for the year.
Cash distribution to Trevor $30,000
Long Term capital loss $1,000
Tax Exempt income $1,000
Charitable contributions $10,000
Medical expenses paid to hospital
on behalf of Grace $20,000
Ordinary Business Income $300,000
Section 179 $60,000
Dividend Income $6,000
What is Trevor’s outside basis at the end of the year?
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