Outside Basis and Taxation of Partners. The TVX Partnership, formed in 2017, owns several office rental buildings. Selected year-end information for its first five years reveals the following:

All liabilities were incurred by the partnership.

Partner A contributed property with a basis of $50,000 and a market value of $75,000 in exchange for her partnership interest. Nine other partners contributed $75,000 cash each. A is a general partner and the other nine partners are limited partners. They share profits and losses equally, 10% each. Prepare a schedule showing (a) the distributive share of profits and losses, and (b) the outside basis of the partnership interest at the end of each year for the general partner and for one of the limited partners.

2017 2018 2019 2020 2021 Recourse liabilities. Nonrecourse liabilities Net income (or loss).. Cash distributed to partners. .. $100,000 $120,000 $130,000 $150,000 $160,000 500,000 400,000 300,000 250,000 200,000 (300,000) (200,000) (110,000) (40,000) 70,000 50,000 100,000 150,000 100,000 0 2017 2018 2019 2020 2021 Recourse liabilities. Nonrecourse liabilities Net income (or loss).. Cash distributed to partners. .. $100,000 $120,000 $130,000 $150,000 $160,000 500,000 400,000 300,000 250,000 200,000 (300,000) (200,000) (110,000) (40,000) 70,000 50,000 100,000 150,000 100,000 0