Question
Ruby's tax basis in her partnership interest at the beginning of the partnership's tax year was $14,275. The following items were included in her Schedule
Ruby's tax basis in her partnership interest at the beginning of the partnership's tax year was $14,275. The following items were included in her Schedule K-1 from the partnership for the year:
Cash Distribution | $ | 4,500 | |
Ordinary Business Loss | $ | (12,000 | ) |
Short-Term Capital Gains | $ | 4,000 | |
Reduction in Ruby's Share of Partnership Debt | $ | 2,000 | |
Determine what amounts related to these items Ruby will report on her tax return assuming her tax basis and at-risk amount are equal and that she is a material participant in the partnership's activities.
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South-Western Federal Taxation 2020 Comprehensive
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
43rd Edition
357109147, 978-0357109144
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