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 and received a cash distribution of $51,400. Note: Do not round intermediate calculations. 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).] §1231 losses Short-term capital losses
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 and received a cash distribution of $51,400. Note: Do not round intermediate calculations. 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).] §1231 losses Short-term capital losses
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 14MCQ
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Transcribed Image Text: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 and
received a cash distribution of $51,400.
Note: Do not round intermediate calculations.
![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).]
§1231 losses
Short-term capital losses](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5328c12f-e34a-4a1d-b440-4bff5d546c4c%2Fd3584294-6b81-47e3-b5e6-16c3a09cb09c%2F4vgex5b_processed.png&w=3840&q=75)
Transcribed Image Text: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).]
§1231 losses
Short-term capital losses
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