Jordan files his income tax return on a calendar-year basis. He is the principal partner of a partnership reporting on a June 30 fiscal year end basis. Jordan's share of the partnership's ordinary income was $24,000 for the fiscal year ended June 30, 2019, and $72,000 for the fiscal year ended June 30, 2020. How much should Jordan report on his 2019 individual income tax return as his share of taxable income from the partnership?

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Quizplus · Accepted Answer

Since the partnership reports on a fiscal year ending June 30th, the $24,000 of ordinary income would be reported on the partnership's 2018 tax return, which Jordan would include on his 2019 individual tax return. Therefore, Jordan should report $24,000 on his 2019 individual tax return as his share of taxable income from the partnership.

Jordan Files His Income Tax Return on a Calendar-Year Basis