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Rochelle is a limited partner in Megawatt Partnership. For 2023, her schedule K-1 from the partnership reported the following share of partnership items: Ordinary income
Rochelle is a limited partner in Megawatt Partnership. For 2023, her schedule K-1 from the partnership reported the following share of partnership items:
| Ordinary income | $ 30,000 |
|---|---|
| Section 1231 loss | (5,100) |
| Nondeductible expense | 2,475 |
| Cash distribution | 4,950 |
Required:
- Calculate the net impact of the given items on Rochelle's 2023 taxable income. Assume that Rochelle does not qualify for the QBI deduction.
- Assume that Rochelle's marginal tax rate is 35 percent. Calculate her 2023 after-tax cash flow as a result of her interest in Megawatt.
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Financial Accounting
Authors: Libby, Short
6th Edition
978-0071284714, 9780077300333, 71284710, 77300335, 978-0073526881
