Question
Partnership BPE's profits and losses are shared equally among the three partners. The adjusted basis of Partner E's interest in the partnership on January 1,
Partnership BPE's profits and losses are shared equally among the three partners. The adjusted basis of Partner E's interest in the partnership on January 1, 2019 was $65,000. On January 3, 2019, Partner E withdrew $16,000 in cash. The partnership reported $165,000 as ordinary income on its 2019 partnership return. In addition, $6,000 for qualified travel, meal, and entertainment expenses was shown on E's Schedule K-1 of Form 1065. Due to the 50% limitation, $3,000 of the $6,000 is unallowable as a deduction. What is the amount of E's basis in the partnership on December 31, 2019?
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