Juan Diego began the year with a tax basis in his partnership interest of $51,800. During the year, he was allocated $20,720 of partnership ordinary business income, $72,520 of 1231 losses, and $31,080 of short-term capital losses and received a cash distribution of $51,800.

Note: Do not round intermediate calculations.

a. What items related to these allocations does Juan Diego actually report on his tax return for the year? [Hint: See Regulations 1.704-1(d)(2) and Revenue Rule 66-94.]

b. If any deductions or losses are limited, what are the carryover amounts, and what is their character? [Hint: See Regulations 1.704-1(d).]

\begin{tabular}{|l|c|} \hline$1231 losses & AmountDeductedCurrently \\ \hline Short-term capital losses & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline1231 losses & \\ \hline Short-term capital losses \\ \hline \end{tabular}