Jennifer has a 25 percent interest in the Aspen Aircraft partnership. Her basis in her partnership interest is $10,000 at the beginning of the year. The partnership reported the following activity for the year: $$\begin{array} { l l }
\text { Ordinary income } & \$ 40,000 \
\text { Section } 1231 \text { gain } & \$ 10,000 \
\text { Charitable contribution } & \$ 12,000 \
\text { Total distributions to partners } & \$ 28,000
\end{array}$$ What is Jennifer's basis in her partnership interest at the end of the year?

Question

Jennifer has a 25 percent interest in the Aspen Aircraft partnership. Her basis in her partnership interest is $10,000 at the beginning of the year. The partnership reported the following activity for the year: $$\begin{array} { l l } 
\text { Ordinary income } & \$ 40,000 \
\text { Section } 1231 \text { gain } & \$ 10,000 \
\text { Charitable contribution } & \$ 12,000 \
\text { Total distributions to partners } & \$ 28,000
\end{array}$$ What is Jennifer's basis in her partnership interest at the end of the year?

Quizplus · Accepted Answer

The Answer of Jennifer has a 25 percent interest in the Aspen Aircraft partnership. Her basis in her partnership interest is $10,000 at the beginning of the year. The partnership reported the following activity for the year: $$\begin{array} { l l } 
\text { Ordinary income } & \$ 40,000 \
\text { Section } 1231 \text { gain } & \$ 10,000 \
\text { Charitable contribution } & \$ 12,000 \
\text { Total distributions to partners } & \$ 28,000
\end{array}$$ What is Jennifer's basis in her partnership interest at the end of the year?

Jennifer Has a 25 Percent Interest in the Aspen Aircraft