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Please answer asap please ignore my answers i dont know if theyre correct! The BCD Partnership plans to distribute cash of $20,000 to partner Brad
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The BCD Partnership plans to distribute cash of $20,000 to partner Brad at the end of the tax year. The partnership reported a loss for the year, and Brad's share of the loss is $10,000. At the beginning of the tax year, Brad's basis in his partnership Interest, including his share of partnership liabilities, was $15,000. The partnership expects to report substantial income in future years. If an amount is zero, "0". a. Generally, in what order are the allocated items applied for calculating Brad's ending basis in his partnership interest? Losses may be deducted under $ 704(d). Distributions from the partnership decrease basis. Contributions and income items increase the basis. Allocation of deductions. ^ b. How much gain or loss will Brad report for the tax year? As a result of the $20,000 distribution, Brad's basis is $ and reports as 5,000 gain for the tax year C. How will the deduction for the $10,000 loss be treated by Brad? It is suspended and carried forward. d. Select either "Yes" as something that could be done to minimize any negative tax ramifications of the distribution or "No", this can not be done. The partnership can make the distribution at the beginning of the following tax year. The partnership could incur additional (short-term) debt at the end of the year. Brad can allocate his loss to another partner please ignore my answers i dont know if theyre correct!
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