Christie purchases a one-third interest in the Corporate Capital Partnership (CCP) in 2010 for $40,000. During 2010,

Question:

Christie purchases a one-third interest in the Corporate Capital Partnership (CCP) in 2010 for $40,000. During 2010, CCP earns an income of $90,000, and Christie withdraws $30,000 in cash from the partnership. In 2011, CCP suffers a loss of $30,000, and Christie withdraws $10,000. What are the tax consequences for Christie of this investment in 2010 and 2011?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...