Dan gifts a 50% interest in his consulting business to his daughter Joy.For the current tax year,the DJ Partnership reports income of $100,000.Dan's services to the partnership were valued at $60,000.For the current tax year,Joy would report a $20,000 share of the partnership's income.

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Joy would receive a 50% interest in the partnership's income, which would be $50,000. However, Dan's services to the partnership are valued at $60,000, which means that he would receive $10,000 more than his 50% share. Therefore, Joy's share of the partnership's income would be reduced by $10,000, leaving her with a $20,000 share.

Dan Gifts a 50% Interest in His Consulting Business to His