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John contributed $20,000 cash in exchange for a 50% capital and profits interest in Adams Partnership o n January 1 , 2 0 22 .
John contributed $20,000 cash in exchange for a 50% capital and profits interest in Adams Partnership on January 1, 2022. During 2022, Adams had net taxable income of $50,000 and John received a $15,000 distribution of cash from the partnership. Adams had $15,000 of partnership liabilities on the last day of 2022. John's outside basis in his partnership interest on December 31, 2022 is
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