Joey and Bob each have a 50% interest in a Partnership. Both Joey and the partnership file returns on a calendar- year basis. Partnership Q had a $12,000 loss in 2017. Joey's adjusted basis in his partnership interest on January 1, 2017, was $5,000. In 2018, the partnership had a profit of $10,000. Assuming there were no other adjustments to Joey's basis in the partnership, what amount of partnership income (loss) should Joey show on his 2017 and 2018 individual income tax returns?

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The Answer of Joey and Bob each have a 50% interest in a Partnership. Both Joey and the partnership file returns on a calendar- year basis. Partnership Q had a $12,000 loss in 2017. Joey's adjusted basis in his partnership interest on January 1, 2017, was $5,000. In 2018, the partnership had a profit of $10,000. Assuming there were no other adjustments to Joey's basis in the partnership, what amount of partnership income (loss) should Joey show on his 2017 and 2018 individual income tax returns?

Joey and Bob Each Have a 50% Interest in a Partnership