Hilda invest $10,000 in a partnership. Her share of the partnership activity for

Question

Hilda invest $10,000 in a partnership. Her share of the partnership activity for the year is as follows, give Hilda’s ending basis in the partnership: (5 points) Show work and label each item.

Nonseparately stated income    15,000 +

Tax exempt income           500 +

Qualified dividend income       1,300

Long term capital gains       1,700 +

Short term capital loss       1,900 -

Charitable contributions       1,000

Investment interest Expense         400 -

Increase in partnership liabilities   3,000 +

Distributions to Hilda            2,000

Fines and penalties           1,200

Explanation / Answer

we can calculate hilda's ending basis as follows,

Opening Contribution by Hilda $10000

Add: Non separeted income share $ 15000

Add: Tax exempted income $500

Add: Dividend Income $1300

Add: Long term Capital Gain $1700

Less: Short term Capital Loss $1900

Less: Charitable Contributions $1000

Less : Interest Expences $400

Less : Increase in Liabilities $3000

Less: Distributions to Hilda $2000

Less : Fines & Penaltiies $1200

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Ending Basis   $19000/-

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So as per calculation above hilda's ending basis in partnership is $ 19000/-

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