Marissa is a 50% partner in the BAM Partnership. At the beginning of the tax year, Marissa's basis in the partnership interest was $200,000, including her share of partnership liabilities. During the current year, BAM reported an ordinary loss of $100,000. In addition, BAM distributed $10,000 to Marissa and paid partner Brian a $20,000 consulting fee (neither of these amounts was deducted in determining the $100,000 loss from operations). At the end of the year, Marissa's share of partnership liabilities decreased by $30,000. Assuming loss limitation rules do not apply, Marissa's basis in the partnership interest at the end of the year is:
A) $135,000.
B) $100,000.
C) $95,000.
D) $90,000.
E) None of the above.

Question

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The Answer of Marissa is a 50% partner in the BAM Partnership. At the beginning of the tax year, Marissa's basis in the partnership interest was $200,000, including her share of partnership liabilities. During the current year, BAM reported an ordinary loss of $100,000. In addition, BAM distributed $10,000 to Marissa and paid partner Brian a $20,000 consulting fee (neither of these amounts was deducted in determining the $100,000 loss from operations). At the end of the year, Marissa's share of partnership liabilities decreased by $30,000. Assuming loss limitation rules do not apply, Marissa's basis in the partnership interest at the end of the year is:
A) $135,000.
B) $100,000.
C) $95,000.
D) $90,000.
E) None of the above.

Marissa Is a 50% Partner in the BAM Partnership