Question

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?
$

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