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 is reduced by the cash distribution. Her initial basis was $25,000, and after receiving a $24,000 distribution, her basis is $1,000 ($25,000 - $24,000).

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