Ruby's tax basis in her partnership interest at the beginning of the partnership's tax year was $13,000.The following items were included in her Schedule K-1 from the partnership for the year:
$\begin{array}{llcc}
\text { Cash Distribution } & \$2,000 \
\text {Ordinary Business Loss } &\$(14,000)\
\text { Short-Term Capital Gairs } &\$2,000\
\text {Reduction in Ruby's Share of Partreeship Debt } &\$4,000\
\end{array}$
Determine what amounts related to these items Ruby will report on her tax return assuming her tax basis and at-risk amount are equal and that she is a material participant in the partnership's activities.

Question

Ruby's tax basis in her partnership interest at the beginning of the partnership's tax year was $13,000.The following items were included in her Schedule K-1 from the partnership for the year:
 $\begin{array}{llcc}
  \text { Cash Distribution } & \$2,000 \
 \text {Ordinary Business Loss  } &\$(14,000)\
 \text { Short-Term Capital Gairs } &\$2,000\
 \text {Reduction in Ruby's Share of Partreeship Debt  } &\$4,000\
\end{array}$
 Determine what amounts related to these items Ruby will report on her tax return assuming her tax basis and at-risk amount are equal and that she is a material participant in the partnership's activities.

Quizplus · Accepted Answer

The Answer of Ruby's tax basis in her partnership interest at the beginning of the partnership's tax year was $13,000.The following items were included in her Schedule K-1 from the partnership for the year:
 $\begin{array}{llcc}
  \text { Cash Distribution } & \$2,000 \
 \text {Ordinary Business Loss  } &\$(14,000)\
 \text { Short-Term Capital Gairs } &\$2,000\
 \text {Reduction in Ruby's Share of Partreeship Debt  } &\$4,000\
\end{array}$
 Determine what amounts related to these items Ruby will report on her tax return assuming her tax basis and at-risk amount are equal and that she is a material participant in the partnership's activities.

Ruby's Tax Basis in Her Partnership Interest at the Beginning