Demarcus is a 50% partner in the DJ partnership. DJ has taxable income for the year of $200,000. Demarcus received a $75,000 distribution from the partnership. What amount of income related to DJ must Demarcus recognize?

Question

Quizplus · Accepted Answer

Demarcus must recognize 50% of the partnership's taxable income, which is $100,000 (50% of $200,000), regardless of the distribution amount.

Demarcus Is a 50% Partner in the DJ Partnership