Determine Julie's basis in her partnership interest and tax return effects. Also, determine Julie's basis in any property received as a distribution from the partnership
Determine Julie's basis in her partnership interest and tax return effects. Also, determine Julie's basis in any property received as a distribution from the partnership
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 2BCRQ
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Question
Determine Julie's basis in her
Transcribed Image Text:Julie Simmons had a 60% interest in capital and profits of Tri-State Partnership. Her basis for
this interest at the beginning of 2022 was $5,700.
During the year, the Tri-State distributed the following assets to Julie.
Cash
Machinery
Inventory
Office Equipment
Basis
$2,000
$4,900
$1,500
$3,000
Fair Market Value
$2,000
$6,100
$2,000
$4.300
Julie also received a guaranteed payment from the partnership in the amount of $3,000 for
management services that she provided. In addition, the partnership had operating income of
$10,000 (before considering any of these other transactions) and LTCLs of $20,000.
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