8. Jim\'s basis in his partnership is $200,000. His share of the current year pa

Question

8. Jim's basis in his partnership is $200,000. His share of the current year partnership income is $60,000. The partnership paid him $75,000 distribution in the current year. What is his new bases in the partnership at the end of the year and what is his taxable income from the partnership? A. $185,000; $135,000 B. $185,000; $60,000 C. $200,000; $75,000 D. $140,000; $60,000 E. $260,000; $60,000 8. Jim's basis in his partnership is $200,000. His share of the current year partnership income is $60,000. The partnership paid him $75,000 distribution in the current year. What is his new bases in the partnership at the end of the year and what is his taxable income from the partnership? A. $185,000; $135,000 B. $185,000; $60,000 C. $200,000; $75,000 D. $140,000; $60,000 E. $260,000; $60,000 A. $185,000; $135,000 B. $185,000; $60,000 C. $200,000; $75,000 D. $140,000; $60,000 E. $260,000; $60,000

Explanation / Answer

Solution: $185,000; $60,000

Explanation:

New bases in the partnership: $200,000 + $60,000 - $75,000 = $185,000

A partnership usually should adopt the same tax year as its majority partners

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