Question

The partner (rather than the partnership) will make which of the following elections? a.To claim a...

The partner (rather than the partnership) will make which of the following elections? a.To claim a credit or deduction for foreign taxes paid. b.To claim a low-income housing credit. c.To claim a § 179 deduction for certain property placed in service during the year. d.To claim straight-line depreciation. e.All of these elections are correct.

At the beginning of the tax year, Barnaby's basis in the BBB Partnership was $160,600, including his $16,060 share of partnership debt. At the end of the tax year, his share of debt was $24,090. His share of the partnership's income for the year was $64,240, and he received cash distributions totaling $40,150. In addition, his share of the partnership's nontaxable income was $3,212.

How much is Barnaby's basis at the end of the tax year?
$

Homework Answers

Answer #1

Partner will make election for:

.To claim a low-income housing credit

End of year basis:

Particulars Amount
Beginning basis $           160,600
Add/ (less) : share of income and loss
Income $             64,240
Non taxable income $               3,212
$           228,052
Less: distribution $            (40,150)
Increase in liability share $               8,030
Ending basis $           195,932
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