During 2021, ABC Partnership had non-separately stated loss (ordinary operating loss) of $(80,000), a long-term capital gain of $20,000. In 2021, they refinanced the $200,000 mortgage and now have a total of $250,000 of qualified non-recourse debt. Tom is 50% partner and his outside basis at the beginning od the year is 100,000. Tom actively works in the business. What items of income will Tom report on his 1040 return? What is Tom's outside basis in his partnership interest at the end of 2021?
During 2021, ABC Partnership had non-separately stated loss (ordinary operating loss) of $(80,000), a long-term capital gain of $20,000. In 2021, they refinanced the $200,000 mortgage and now have a total of $250,000 of qualified non-recourse debt. Tom is 50% partner and his outside basis at the beginning od the year is 100,000. Tom actively works in the business. What items of income will Tom report on his 1040 return? What is Tom's outside basis in his partnership interest at the end of 2021?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 21P
Related questions
Question
During 2021, ABC Partnership had non-separately stated loss (ordinary operating loss) of $(80,000), a long-term capital gain of $20,000. In 2021, they refinanced the $200,000 mortgage and now have a total of $250,000 of qualified non-recourse debt. Tom is 50% partner and his outside basis at the beginning od the year is 100,000. Tom actively works in the business.
What items of income will Tom report on his 1040 return? What is Tom's outside basis in his partnership interest at the end of 2021?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you