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Gary is one of four general partners in GSG Partnership. He receives his Schedule K-1 (Form1065) from GSG for the current tax year. It shows
Gary is one of four general partners in GSG Partnership. He receives his Schedule K-1 (Form1065) from GSG for the current tax year. It shows his share of items as follows: $6,000 ordinary business income, $500 charitable contributions, and $1,000 section 179 expense deduction. Italso shows $4,000 in guaranteed payments and a $2,000 cash distribution. His adjusted basisat the beginning of the tax year was $3,000. Assume Gary claims the entire section 179expense deduction, and it is not reduced by any limitations. This is a three-part question.
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