Calculation/explanation of the taxable portion from the limited partnerships (must include loss carryforwards as well as their classification):

During the year, Janice invested $10,000 (tax basis and at-risk basis) into XYZ limited partnership (a passive investment). Her share of the limited partnership income for the year was $5,000, and Janice received a $7,000 distribution from XYZ limited partnership.

During the year, Janice also invested $4,000 (tax basis and at-risk basis) into ABC limited partnership (a passive investment). Her share of the limited partnership loss for the year was $6,000. Because ABC limited partnership lost money during the year there were no distributions paid to partners.