The B & W partnership earned taxable income of $100,000 for the year. Bryan is entitled to 50% of the profits, but Bryan withdrew only $40,000 during the year. Bryan must include in gross income his $50,000 share of the profits from the partnership.

Question

Quizplus · Accepted Answer

Bryan is entitled to 50% of the profits, regardless of whether he withdrew them or not. Therefore, he must include his full share of the profits, which is $50,000, in his gross income for the year.

The B & W Partnership Earned Taxable Income of $100,000