Question
Brody is one of two general partners in ZBC Partnership. He received his Schedule K-1 (Form 1065) from ZBC for the current tax year. It
Brody is one of two general partners in ZBC Partnership. He received his Schedule K-1 (Form 1065) from ZBC for the current tax year. It shows his share of items as follows: $9,500 ordinary business loss and $230 charitable contributions. It also shows a $2,500 cash distribution which he received on March 1. Brody knows his adjusted basis at the beginning of the tax year was $7,400. He did not contribute funds during the tax year and did not increase his share of partnership liabilities.
Question 1: How much (if any) of the ZBC loss must Brody carry forward until his basis is reestablished?
Question 2: What is Brody's adjusted basis in XYP, including his share of the loss?
b) $4,670; $4,830; $ 0
c) $4,784; $4,716; $ 0
d) $4,900; $4,600; $ 0
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