For the year ending December 31, 2020, the PU Partnership has correctly computed its Net Business Income to be $213,000. The partnership agreement calls for all allocations to Partner P and Partner U to be on a 40:60 basis. Partner P and U are both individuals and neither has Taxable Income that will be taxed federally at 33 percent.
In determining the Net Business Income amount, the partnership's accountant added back $4,200 in charitable donations and $900 in contributions to a registered political party. In addition, $2,700 in eligible dividends received were deducted. The partners have made no charitable donations or political contributions as individuals.
Determine the amount of any tax credits that will be allocated to Partner P and Partner U for the year ending December 31, 2020.

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The Answer of For the year ending December 31, 2020, the PU Partnership has correctly computed its Net Business Income to be $213,000. The partnership agreement calls for all allocations to Partner P and Partner U to be on a 40:60 basis. Partner P and U are both individuals and neither has Taxable Income that will be taxed federally at 33 percent.
In determining the Net Business Income amount, the partnership's accountant added back $4,200 in charitable donations and $900 in contributions to a registered political party. In addition, $2,700 in eligible dividends received were deducted. The partners have made no charitable donations or political contributions as individuals.
Determine the amount of any tax credits that will be allocated to Partner P and Partner U for the year ending December 31, 2020.

For the Year Ending December 31, 2020, the PU Partnership