Jake Scoots LP, a calendar-year partnership, provides scooter repair services and rents scooters. The business started on January 1, Year 1. Jake owns 60% of the partnership, and Kelly owns 40%. Jake, a general partner, manages the shop and receives a guaranteed payment from the partnership. Kelly is a limited partner and is not involved in the operations of the business.

Using the data calculate the amount of each partner's basis in the partnership interest at the end of Year 1 and Year 2.

Enter losses, deductions, and distributions as negative values.

Enter income, gains, and contributions as positive values.

If an item is zero, or the item does not impact basis in the partner's partnership interest, enter a zero.

	Jake	Kelly
Year 1:
Beginning basis in partnership interest	$0	$0
Contributions
Partnership recourse debt (trade accounts payable)
Partnership nonrecourse secured debt (land)
Ordinary business income
Nontaxable income
Separately stated income items
Guaranteed payment (John)
Distributions
Nondeductible expenses
Ordinary business loss
Separately stated expense items
Year 1 Ending Basis in Partnership Interest
Year 2:
Contributions
Increase in partnership recourse debt (accounts payable)
Increase in partnership nonrecourse secured debt (land)
Ordinary business income
Nontaxable income
Separately stated income items
Guaranteed payment (John)
Decrease in partnership recourse debt (accounts payable)
Decrease in partnership nonrecourse secured debt (land)
Distributions
Nondeductible expenses
Ordinary business loss
Separately stated expense items
Year 2 Ending Basis in Partnership Interest