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Trevor and Grace formed Travelers Partnership in 1992. They are equal partners. At the beginning of...

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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