Jason purchased a 20 percent interest in JKL Partnership for $20,000 at the beginning of the year.At year-end, the partnership reported net income of $15,000 and distributed $2,000 cash to Jason.Assuming Jason's QBI deduction is not limited, what is the net amount taxable to Jason's this year as a result of his interest in JLK Partnership?
A)$15,000
B)$12,000
C)$3,000
D)$2,400

Question

Quizplus · Accepted Answer

Jason's distributive share of partnership income is $3,000 (20% x $15,000). After considering the cash distribution of $2,000, Jason's net amount taxable is $1,000 ($3,000 - $2,000).

Jason Purchased a 20 Percent Interest in JKL Partnership for $20,000