Mark is a cash basis taxpayer.He is a partner in the M&M partnership,and his share of the partnership's profits for 2014 is $90,000.Only $40,000 was distributed to him in January 2014,and this was his share of the 2013 partnership profits.None of the 2014 profits were distributed.Mark's gross income from the partnership for 2014 is $40,000.

Question

Quizplus · Accepted Answer

Each partner must report his or her distributive share of the partnership's income and deductions for the partnership's tax year ending within or with the partner's tax year even if such income is not actually distributed.So Mark should report $90,000 for 2014.

Mark Is a Cash Basis Taxpayer