Rita has a beginning basis in a partnership of $43,000.Rita's share of income and expense from the partnership consists of the following amounts:
$\begin{array}{lr}
\text { Ordinary income } & \$ 36,00 0\
\text { Guaranteed payment } & 18,000 \
\text { Long-term capital gain } & 22,500 \
\text { §1231 gain } & 5,700\
\text { Charitable contributions } & 5,600 \
\text { §179 expense } & 23,00 0\
\text { Cash distribution } & 12,000
\end{array}$ a.What items are separately stated?
b.What is Rita's self-employment income?
c.Calculate Rita's partnership basis at the end of the year.

Question

Rita has a beginning basis in a partnership of $43,000.Rita's share of income and expense from the partnership consists of the following amounts:
 $\begin{array}{lr}
\text { Ordinary income } & \$ 36,00 0\
\text { Guaranteed payment } & 18,000 \
\text { Long-term capital gain } & 22,500 \
\text { §1231 gain } & 5,700\
\text { Charitable contributions } & 5,600 \
\text { §179 expense } & 23,00 0\
\text { Cash distribution } & 12,000
\end{array}$ a.What items are separately stated?
b.What is Rita's self-employment income?
c.Calculate Rita's partnership basis at the end of the year.

Quizplus · Accepted Answer

The Answer of Rita has a beginning basis in a partnership of $43,000.Rita's share of income and expense from the partnership consists of the following amounts:
 $\begin{array}{lr}
\text { Ordinary income } & \$ 36,00 0\
\text { Guaranteed payment } & 18,000 \
\text { Long-term capital gain } & 22,500 \
\text { §1231 gain } & 5,700\
\text { Charitable contributions } & 5,600 \
\text { §179 expense } & 23,00 0\
\text { Cash distribution } & 12,000
\end{array}$ a.What items are separately stated?
b.What is Rita's self-employment income?
c.Calculate Rita's partnership basis at the end of the year.

Rita Has a Beginning Basis in a Partnership of $43,000