Sandy and Larry each have a 50% interest in SL Partnership. The partnership and the individuals file on a calendar- year basis. In 2017, SL Partnership had a $30,000 ordinary loss. Sandy's adjusted basis in her partnership interest on January 1, 2017, was $12,000. In 2018, SL Partnership had ordinary income of $20,000. Assuming there were no other adjustments to Sandy's basis in the partnership, what amount of partnership income (loss) would Sandy show on her 2017 and 2018 individual income tax returns?

Question

Quizplus · Accepted Answer

The Answer of Sandy and Larry each have a 50% interest in SL Partnership. The partnership and the individuals file on a calendar- year basis. In 2017, SL Partnership had a $30,000 ordinary loss. Sandy's adjusted basis in her partnership interest on January 1, 2017, was $12,000. In 2018, SL Partnership had ordinary income of $20,000. Assuming there were no other adjustments to Sandy's basis in the partnership, what amount of partnership income (loss) would Sandy show on her 2017 and 2018 individual income tax returns?

Sandy and Larry Each Have a 50% Interest in SL