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Rick is a 50% partner in the Garcia Partnership. He has a partnership basis of $10,000. In year 1 the partnership had an $8,000 ordinary
Rick is a 50% partner in the Garcia Partnership. He has a partnership basis of $10,000. In year 1 the partnership had an $8,000 ordinary business loss and distributed $4,000 to Rick. In year 2 the partnership had ordinary business income of $16,000 and a distribution of $5,000 to Rick.
- In year 1 how much is Ricks basis at the end of the year? __________________
- In year 1 how much was Rick able to take as a business loss on his tax return? _____________________
- In year 2 how much is Ricks basis at the end of the year? ___________________
- In year 2 how much was Ricks taxable income?
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