Notes:

On part a:

o There are $2$ items that increase the basis. That leads to basis before distribution

o Then report the cash distribution, and gets to the Basis before Loss Allocations

o Determine the ordinary loss, and allocate it to the two partners

o This gets you the partners$$ ending tax basis

$$ On part b$,$ apply the first two limitation rules

$$ On part c$,$ he is a limited partner, which leads to a passive activity loss. This should guide you

on how to allocate the ordinary business loss for each partner; the answer is not the same for

two partners

$$ On part d$,$ you have to report $($do all of this in excel$)$

o Page $1$ of form $1065$

o Page $4$ of form $1065$

o K$-1$ for Francesa and a separate K$-1$ for Amir. You need numbers in the following lines

$$ Part II$,$ L$,$ two items

$$ Part III, line $1,8,10,14,18,19,20($QBI$)$