The STU Partnership, an electing Large Partnership, has no passive activities and reports the following transactions for the year: net long- term capital losses $50,000, Sec. 1231 gain $60,000, ordinary income $20,000, charitable contributions $15,000, and tax- exempt income $2,000. How much will be reported as long- term capital gains to its partners?

Question

Quizplus · Accepted Answer

The net long-term capital loss of $50,000 offsets the Sec. 1231 gain of $60,000, resulting in a net long-term capital gain of $10,000.

The STU Partnership, an Electing Large Partnership, Has No Passive