a. What items related to these allocations does Juan Diego actually report on his tax return for the year? [Hint. See Regulations §1.704-1(d)(2) and Revenue Rule 66-94.]$1231 lossesShort-term capital lossesAmountDeductedCurrently Juan Diego began the year with a tax basis in his partnership interest of $51,400. During the year, he was allocated$20,560 of partnership ordinary business income, $71,960 of $1231 losses, and $30,840 of short-term capital losses andreceived a cash distribution of $51,400.Note: Do not round intermediate calculations.

§1231 Losses Deduction:Thus, the entire amount of $71,960 is deductible as an ordinary loss, since…

Answered: a. What items related to these…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter10: Partnership Taxation

Section: Chapter Questions

Problem 14MCQ

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Juan Diego began the year with a tax basis in his partnership interest of $53,800. During the year, he was allocated $21, 520 of partnership ordinary business income, $75, 320 of §1231 losses, and $32, 280 of short- term capital losses and received a cash distribution of $53, 800. Note: Do not round intermediate calculations. Problem 20 - 75 Part b (Algo) b. If any deductions or losses are limited, what are the carryover amounts, and what is their character? [Hint: See Regulations §1.704 - 1(d).]
Juan Diego began the year with a tax basis in his partnership interest of $53,000. During the year, he was allocated $21,200 of partnership ordinary business income, $74,200 of §1231 losses, and $31,800 of short-term capital losses and received a cash distribution of $53,000. b. If any deductions or losses are limited, what are the carryover amounts, and what is their character?
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Ma3. Partner's tax basis in his partnership interest at the beginning of the year was $10,000. For the year, Partner's share of the partnership liabilities increased by $1.000. Also for the year, Partner was allocated $2,000 in ordinary business income, $500 of interest income, and $1,000 of tax-exempt income Finally, Partner received cash distributions of $3,000 during the year. Determine Partner's tax basis in his partnership interest at the end of the year. Type your answer
Nareh began the year with a tax basis of $44,000 in her partnership interest. Her share of partnership liabilities consists of $7,000 of recourse liabilities and $11,000 of nonrecourse liabilities at the beginning of the year and $7,000 of recourse liabilities and $13,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $62,000 of partnership ordinary business loss. Nareh does not materially participate in this partnership, and she has $4,000 of passive income from other sources. c. How much of Nareh's loss is limited by the passive activity loss rules? Loss limited by the passive activity loss rules
Nareh began the year with a tax basis of $44,000 in her partnership interest. Her share of partnership liabilities consists of $7,000 of recourse liabilities and $11,000 of nonrecourse liabilities at the beginning of the year and $7,000 of recourse liabilities and $13,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $62,000 of partnership ordinary business loss. Nareh does not materially participate in this partnership, and she has $4,000 of passive income from other sources. b. How much of Nareh's loss is limited by her at-risk amount? Loss limited by her at-risk amount
Nareh began the year with a tax basis of $20,000 in her partnership interest. Her share of partnership liabilities consists of $12,000 of recourse liabilities and $12,000 of nonrecourse liabilities at the beginning of the year and $12,000 of recourse liabilities and $16,000 of nonrecourse liabilities at the end of the year. During the year, she was allocated $32,000 of partnership ordinary business loss. Nareh does not materially participate in this partnership, and she has $6,000 of passive income from other sources. b. How much of Nareh's loss is limited by her at-risk amount?
At the beginning of the tax year, Barnaby’s basis in BBB Partnership was $50,000, including his $5,000 share of partnership debt. At the end of the tax year, his share of debt was $8,000. His share of the partnership’s income for the year was $20,000, and he received distributions totaling $12,000. In addition, his share of the partnership’s nontaxable income was $1,000. How much is Barnaby’s basis at the end of the tax year? Show your calculations.
In the current year, the POD Partnership received revenues of $200,000 and paid the following amounts: $50,000 in rent and utilities, and $20,000 as a distribution to partner Olivia. In addition, the partnership earned $6,000 of long-term capital gains during the year. Partner Donald owns a 50% interest in the partnership. How much income must Donald report for the tax year? a $68,000 ordinary income. b $78,000 ordinary income. $65,000 ordinary income; $3,000 of long-term capital gains. d $75,000 ordinary income; $3,000 of long-term capital gains. e None of the above.

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