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Henry is a 50% partner in HJ Partnership. For 2016, the tax form he receives from HJ (Schedule K-1 of Form 1065) shows business income
Henry is a 50% partner in HJ Partnership. For 2016, the tax form he receives from HJ (Schedule K-1 of Form 1065) shows business income of $40,000. During 2016, Henry received a $10,000 distribution from HJ. Assume Henry's basis in the partnership is $20,000.
a. How much must Henry report on his Form 1040 from HJ for 2016? $_________
b. Assume HJ is a S corporation. How much must Henry report on his Form 1040 from HJ for 2016? $_________
the answer is not ($30,000 and $30,000) or ($20,000 and $20,000)
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