Dalton is a 25% partner in the Venus Partnership. At the end of 2019, his tax basis
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Question:
Dalton is a 25% partner in the Venus Partnership. At the end of 2019, his tax basis in his partnership interest was $10,000. In 2020, he received a $20,000 guaranteed payment for deductible services provided to the partnership. Guaranteed payments were not made to any other partner. Venus’s 2020 partnership income consisted of: Net business income before guaranteed payments $80,000 Net long-term capital gains $10,000
a. Compute the amount of income that Dalton should report from the partnership on his 2020 tax return?
b. Compute his tax basis at the end of the year?
Expert Answer:
Answer and Explanation a Net income after guaranteed payments 8000020000 60000 Shar... View the full answer
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