Question
Abby receives the following information from her schedule K-1 related to her partnership interest in Equestrian Partnership. Schedule K-1 Information: Ordinary income (loss): ($20,000) Tax-exempt
Abby receives the following information from her schedule K-1 related to her\ partnership interest in Equestrian Partnership.\ Schedule K-1 Information:\ Ordinary income (loss): ($20,000)\ Tax-exempt interest income: $3,000\ Capital gain (loss): $2,000\ Charitable contribution: $5,000\ Dividend Income: $10,000\ Guaranteed Payment: $10,000\ Capital Contribution: $3,500\ Increase in share of debt: $11,000\ Cash Distribution: $45,000\ A. Calculate Abbys ending adjusted basis (including any potential gains from negative\ outside basis) or loss carryforward amounts (from loss limitation). Abbys beginning\ outside basis is $25,000.\ B. What if Abbys cash distribution is $60,000 instead of $45,000? Calculate Abbys ending\ adjusted basis (including any potential gains from negative outside basis) or loss\ carryforward amounts (from loss limitations). Abbys beginning outside basis is still\ $25,000.
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