Jordan files his income tax return on a calendar-year basis. He is the principal partner of a partnership reporting on a June 30 fiscal year end basis. Jordan's share of the partnership's ordinary income was $24,000 for the fiscal year ended June 30, 2015, and $72,000 for the fiscal year ended June 30, 2016. How much should Jordan report on his 2015 individual income tax return as his share of taxable income from the partnership?

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Quizplus · Accepted Answer

Since Jordan files his income tax return on a calendar-year basis and the partnership reports on a June 30 fiscal year end basis, Jordan's share of the partnership's income for the period of January 1, 2015, to June 30, 2015, will be included in his taxable income for the 2015 individual income tax return. Therefore, his share of $24,000 for the fiscal year ended June 30, 2015, will be reported on his 2015 individual income tax return.

Jordan Files His Income Tax Return on a Calendar-Year Basis