Paris,a 60% partner in Omega Partnership,has a basis of $25,000 in her partnership interest.Paris receives a cash distribution of $24,000 at year-end.What is Paris's basis in her partnership interest at the end of the year?

Question

Quizplus · Accepted Answer

Paris's basis in her partnership interest would decrease by the amount of the cash distribution she received, which is $24,000. Therefore, her new basis would be $1,000 ($25,000 - $24,000) since she is a 60% partner. Option B is the correct answer as it reflects this.

Paris,a 60% Partner in Omega Partnership,has a Basis of $25,000