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G and H are individual partners in GH Partnership and share equally in its profits and losses. G had a basis of $5,000 in the
G and H are individual partners in GH Partnership and share equally in its profits and losses. G had a basis of $5,000 in the partnership, before considering the $14,000 ordinary loss reported by GH for 20X5. In 20X6, the partnership reports a $6,000 ordinary gain on Form 1065. What net income or loss should G report on his 20X6 personal return? Assume that there are no other transactions that affect Gs basis in the partnership for 20X5 and 20X6.
$1,000 income | ||
$0 | ||
$2,000 loss | ||
$2,000 income | ||
$3,000 income |
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