Maria is a calendar-year taxpayer who owns a 40% interest in LMN Partnership, which uses a June 30 fiscal year-end. LMN Partnership had $180,000 of ordinary income for the year ended June 30, 2024, and $210,000 of ordinary income for the year ended June 30, 2025. On November 15, 2024, Maria withdrew $75,000 from the partnership when her basis in the partnership was $165,000. What amount should Maria report on her 2024 tax return as ordinary income from LMN Partnership? a. $72,000 b. $84,000 c. $75,000 d. $96,000

SWFT Individual Income Taxes
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ISBN:9780357391365
Author:YOUNG
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Chapter20: Corporations And Parterships
Section: Chapter Questions
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subject : general accounting

Maria is a calendar-year taxpayer who owns a 40% interest in LMN Partnership, which uses a June
30 fiscal year-end. LMN Partnership had $180,000 of ordinary income for the year ended June 30,
2024, and $210,000 of ordinary income for the year ended June 30, 2025. On November 15, 2024,
Maria withdrew $75,000 from the partnership when her basis in the partnership was $165,000.
What amount should Maria report on her 2024 tax return as ordinary income from LMN
Partnership?
a. $72,000
b. $84,000
c. $75,000
d. $96,000
Transcribed Image Text:Maria is a calendar-year taxpayer who owns a 40% interest in LMN Partnership, which uses a June 30 fiscal year-end. LMN Partnership had $180,000 of ordinary income for the year ended June 30, 2024, and $210,000 of ordinary income for the year ended June 30, 2025. On November 15, 2024, Maria withdrew $75,000 from the partnership when her basis in the partnership was $165,000. What amount should Maria report on her 2024 tax return as ordinary income from LMN Partnership? a. $72,000 b. $84,000 c. $75,000 d. $96,000
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